Risk Management in Industry - an Overview
THEME
Risk Management in Industry – An overview apid industrialisation has brought in its wake several problems. One of them is ‘industrial risk’, which is taking newer and newer forms ever. With mechanical, electrical, chemical and radiation hazards besetting the industrial world, the ‘Risks to Life, Limb, Health and Wealth’ are common in this sphere of economic activity. Risks are present in every corner and under every stone. Industrial risks may arise while handling, storage or because of
S. Ranga Swamy
The author is a Member of Institute
R
services. The Supreme Court judgement in the Delhi gas leak case and the Bhopal disaster case have added a new dimension to the issue of industrial risk. While the workers are worried about their life, managements are concerned over the financial liabilities likely to be imposed by an accident. The Supreme Court has held in the Shriram fertilisers industries case that if an enterprise is engaged in a hazardous or inherently dan-
The Bhopal Gas disaster in 1984 had added an altogether new dimension to the problem of industrial risk in India. Since then, the industrial workers have become more vigilant about their safety while the managements dread the financial liabilities likely to be imposed by an accident. The Corporate Sector in India is increasingly realising the importance of putting its ‘industrial risk plans’ in writing and employing a ‘risk manager’ to handle their risks. The article offers a peep into the concept. operational errors and violation of accepted safety procedures. The industry, therefore, has to be always prepared for such eventualities. An industrial risk is the one that may affect several areas within the factory or may cause serious injuries, loss of life, extensive damage to property and disruption to manufacturing activities. Such risks may occur in any industry in spite of best efforts to prevent them. The suffering and damage as a result of the accident is determined by the potential
Risk Management in Industry – An overview apid industrialisation has brought in its wake several problems. One of them is ‘industrial risk’, which is taking newer and newer forms ever. With mechanical, electrical, chemical and radiation hazards besetting the industrial world, the ‘Risks to Life, Limb, Health and Wealth’ are common in this sphere of economic activity. Risks are present in every corner and under every stone. Industrial risks may arise while handling, storage or because of
S. Ranga Swamy
The author is a Member of Institute
R
services. The Supreme Court judgement in the Delhi gas leak case and the Bhopal disaster case have added a new dimension to the issue of industrial risk. While the workers are worried about their life, managements are concerned over the financial liabilities likely to be imposed by an accident. The Supreme Court has held in the Shriram fertilisers industries case that if an enterprise is engaged in a hazardous or inherently dan-
The Bhopal Gas disaster in 1984 had added an altogether new dimension to the problem of industrial risk in India. Since then, the industrial workers have become more vigilant about their safety while the managements dread the financial liabilities likely to be imposed by an accident. The Corporate Sector in India is increasingly realising the importance of putting its ‘industrial risk plans’ in writing and employing a ‘risk manager’ to handle their risks. The article offers a peep into the concept. operational errors and violation of accepted safety procedures. The industry, therefore, has to be always prepared for such eventualities. An industrial risk is the one that may affect several areas within the factory or may cause serious injuries, loss of life, extensive damage to property and disruption to manufacturing activities. Such risks may occur in any industry in spite of best efforts to prevent them. The suffering and damage as a result of the accident is determined by the potential