Mr. Christian S.

Sol
Accredited DOLE-OSH Safety Consultant
Accredited DENR Pollution Control Officer
 HAZARDS are strongly believed to
have emanated from the introduction
of machineries.
 This transition of MANPOWER to
MACHINE POWER, exposed workers to
moving gears, cutting blades & power
operation, which brought about the
various hazards confronting workers
at the workplace.
 The old EMPLOYER’S LIABILITY LAW
was of no help to the worker because
doctrines of the COMMON LAW
supplied employers with an adequate
defense against suits brought about
by injured workers or their families.
 It was extremely difficult to obtain an
adequate settlement since COMMON
LAW gave injured workers very little
chance for compensation due to:
o injured worker will usually hesitate to put
his job in jeopardy by suing his employer;
o does not have much chance to prove his
case in court;
o out of court settlement proved to be more
beneficial on the part of the worker than
legal action.
 WORKMEN’S COMPENSATION
LEGISLATION, in contrast with the old
employer’s liability law, eliminates the
problem of determining whose fault
caused the injury. Under workmen’s
compensation, the employer is held
liable, not on the basis of his fault or
negligence, but on the basis of SOCIAL
POLICY.
 With the advent of COMPENSATION
LAWS, concerned employers had to
assume a substantial part of the
financial cost of injuries. Employers
started shifting their obligation for
actual compensation payments to
INSURANCE ORGANIZATIONS, either
state or privately operated.
 LOSS CONTROL is any intentional
management action directed at the
PREVENTION, REDUCTION, or
ELIMINATION of the PURE RISKS of
business.
 Primary Types of Risk
1. SPECULATIVE RISK
2. NON-SPECULATIVE RISK (PURE
RISK)
 1

SPECULATIVE RISK is UNCERTAINTY as

to whether an activity will result in A
GAIN OR A LOSS.
SPECULATIVE RISKS include building a
plant that turns out to have the wrong
capacity or keeping an inventory level
that turns out to be too high or too low.
 2
PURE RISK (NON-SPECULATIVE RISK) is
UNCERTAINTY as to whether some
unpredictable event that can result in
LOSS will occur.
PURE RISK can result only in loss, never
in gain. This kind of risk consists of
hazards such as a fire, death of key
employees, or customer injuries on the
premises of the business.
LOSS CONTROL MANAGEMENT is the
application of professional management
techniques & skill through PROGRAM
ACTIVITIES directed at RISK
AVOIDANCE, LOSS PREVENTION & LOSS
REDUCTION, specifically intended to
minimize losses resulting from pure risks
of business.
LOSS CONTROL MANAGEMENT involves
the following :
 the IDENTIFICATION of risk exposures

 MEASUREMENT & ANALYSIS of

exposures
 DETERMINATION OF EXPOSURES that
will respond to existing or available
LOSS CONTROL TECHNIQUES OR
ACTIVITIES.
 the selection of the appropriate LOSS
CONTROL ACTION based on
effectiveness & economic restraints.
PROGRAM ELEMENT

KEY PERFORMANCE
AREAS

LOSS PREVENTION PROCES

HIRARC
HAZARD – FREE FACILITIY
H MANAGING ASSETS & RESOURCES
 PEOPLE
I  EQUIPMENT & TOOLS BUSINESS
 MATERIALS & SUBSTANCES OBJECTIVES
R 

ENVIRONMENT
WORK METHODS OR PROCEDURES
Profitability
Growth &
A 

TIME
MGNT SYSTEM & STRUCTURE
Continuity

R In recent years, HAZARD IDENTIFICATION, RISK ASSESSMENT

& RISK CONTROL has become fundamental to the practice of

C PLANNING, MANAGEMENT & OPERATION of a business.

ZERO ACCIDENT PERFORMANCE

 RISK
MANAGEMENT

LOSS CONTROL RISK TRANSFER

MANAGEMENT (INSURANCE)

LOSS PREVENTION
Occupational
Health & Safety
SAFETY & HEALTH Management System
MANAGEMENT (OHSMS)
(Zero Accident Performance)
 LEADERSHIP & MANAGEMENT PLANNED JOB/TASK JOB/TASK
ADMINISTRATION TRAINING INSPECTION ANALYSIS OBSERVATION
& PROCEDURES

PERSONAL ORGANIZATION HIRING & ACCIDENT & ACCIDENT &

COMMUNICATION RULES & PLACEMENT INCIDENT INCIDENT
REGULATIONS INVESTIGATION ANALYSIS

PURCHASING & EMPLOYEE HEALTH PERSONAL MEASUREMENT

ENGINEERING TRAINING CONTROLS & PROTECTIVE AUDIT SYSTEM
CONTROLS SERVICES EQUIPMENT

GROUP GENERAL EMERGENCY RECORDS & OFF-THE-JOB

MEETINGS PROMOTIONS PREPAREDNESS REPORTS SAFETY
 Elements of International
Identification of
I Safety Rating System
Work Activities
(ISRS)
Measurement/guide to
S Standards
employees performance
Frequency Rate
M Measurement
& Severity Rate
Monitoring of
E Evaluation
Program Effectiveness
CLOSURE
Commendation &
C (Implementation of
Correction
Corrective Actions)
 MANAGERS/SUPERVISORS are
responsible for the safety & health of
others, i.e., ACCOUNTABILITIES.
 MANAGING SAFETY & HEALTH
provides significant opportunity for
MANAGING COSTS.
 SAFETY & HEALTH/LOSS CONTROL
MANAGEMENT provides an
OPERATIONAL STARTEGIES to
improve overall management.
 Generally, the better a management’s
ANALYSIS OF COST, understanding of
the HUMAN PROBLEMS in production,
and; consciousness of PUBLIC
RELATIONS, is likely to be more
thorough with its ACCIDENT
PREVENTION PROGRAM.
A sound LOSS CONTROL PROGRAMS aim
to eliminate PROBLEMS of:
 OCCUPATIONAL HEALTH,
 PROPERTY DAMAGE,
 PRODUCT SAFETY,
 SECURITY, and
 any other areas where an UNINTENDED
INCIDENT can occur & detract the
organization’s PROFITABILITY.
 TOP MANAGEMENT must be involved &
sensitive to all aspects of loss control
management programs.
 The RESPONSIBILITY for the program
must not only lie with the front-line
supervisors, but with ALL MANAGERS
and ALL LEVELS of the organization.
 And all organizations, regardless of
their size, must participate if they are
to survive.
 Realistic STANDARDS for loss control
management programs are derived
from the knowledge & inputs of the
professionals who are out on the job.
 Organizations no longer enjoy the
luxury of PAYING FOR THE COSTS of
unnecessary & avoidable losses.
 A peso of PREVENTION will harvest
many more pesos of SAVINGS &
PROFITS, both tangible & intangible.
 Safety doesn’t require extra time. On
the other hand, UNSAFE PRACTICES &
UNSAFE CONDITIONS, particularly
resulting in injuries & property
damage are time-consuming & very
costly.
 The main reason for success in safety
is the day-to-day & hour-by-hour
CONSISTENCY with which we apply
the PRINCIPLES of SAFETY &
HEALTH/LOSS CONTROL PROGRAM.