Risk Grading

In Loss Prevention programs it is often very useful to be able to establish a list of priorities among the required improvements, both for economical and timing reasons.

Moreover in case of large companies having numerous industrial and commercial facilities a grading system provides criteria both for improvement and for sharing the cost of insurance with the final objective of reaching an above than average risk level.

Key Performance Indicators (KPI) can be established to evaluate the correctness of risk grading as well as the adequacy of the Loss Prevention program. Examples of KPI in this field could be: number of losses, maximum value of losses, variation of the cost of insurance.

Comparison between KPIs and actual quantitative outcomes provide a measure of risk reduction.
KPIs are sometimes dynamic and can be adapted to changing situations.