Risk management isn’t just about people getting injured. There are many facets to risk management.
They extend from making sure that your company stays in business to avoiding costly errors in process or in deeds. Let’s look at the flood potential in Houston for an example.
Likelihood of flooding in Houston
There is some flooding almost every year [50% could be the likely probability]
Cost of the problem?
What are the costs associated with flooding?
What are the costs of repairs?
What is the dollar amount of damage to flooded automobiles?
What are the costs of law suits?
Cost of Alternatives?
If we could insure against flooding, how much would that cost?
If we built another reservoir, what would that cost?
How effective would that be?
If we created another bayou to move the water to the bay, what would that cost?
How well would that work?
Is there another way to distribute the flood waters?
What would that cost?
Who owns the problem? The city of Houston?
Where does the money come from to pay for an alternative?
Let’s assume that the city of Houston owns the problem. That being the case, the problem becomes political. Determining the best solution isn’t black and white, it is gray [subjective]. If you have an opinion on how to solve this problem, you better make sure to have voice heard.
I am sure that whoever owns this problem is looking at all of these alternatives and likely more…