Techniques for Cost Effective Risk Reduction
Davis, Brett; Trammell, Steve
(Motorola, Austin, TX)
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Corporations have many independent, often competing interests clamoring for risk reduction funding. Such external entities as fire and building authorities, loss prevention insurers, OSHA and EPA, as well as such internal entities Facilities, Security, Environmental, Health Resources and Safety Departments, routinely provide recommendations or requirements for business interruption, system reliability and quality, environmental protection and personnel safety risk reduction. Rational management of these risks within limited annual budgets requires difficult to quantify value judgments. Obviously, mitigating every risk regardless of cost is both impractical and essentially impossible, since the business will neither have sufficient resources to quantify every credible risk, nor have the needed capital to implement all of the determined corrective actions. This paper will discuss unique competing risks identification and prioritization techniques developed at Motorola, that allow for optimized, continual risk reduction. A key component of this technique involves developing and negotiating for alternative methods to achieve acceptable risk reductions at lesser cost.