LAMP™ Training: Loss Avoidance Management Process
To assist companies to fully capitalise on this first law of business, WrightWay has developed ‘The Loss Avoidance Management Process’ (LAMP’™). Using ‘LAMP’ allows an organisation to ‘shine a light’ on potential losses before they occur.
LAMP’™ is based on a formula. By analysing the cost of positive risk avoidance measures against the potential cost of exposure to unforeseen loss that an organisation might experience, it is possible to quantify what has hitherto often been a subjective assessment.
When LAMP’™ is linked to effective risk assessment and efficient investigation of accidents and incidents, it provides a very powerful tool for improving health and safety and business performance.
The UK Health and Safety Executive estimate the average cost of a lost time accident involving employee absence of work for three or more days is estimated to be around £50,000.
As defined by the UK Health and Safety Executive, an accident is:
Any unplanned event that results in injury or ill-health of people, or damage or loss to property, plant, materials, the environment or a loss of a business opportunity.
The UK insurance industry estimates that a company’s unclaimed losses from error and accident cost the individual company 10 times their annual insurance premiums.
It follows that any reduction in a company’s accident rate will have a direct bearing on profit. It is WrightWays experience that conducting LAMP’™ analysis yields significant benefits far in excess of the costs of implementation.
