To assist companies to fully capitalise on this basic first principle of business, WrightWay Training Limited has developed 'The Loss Avoidance Management Process' (LAMP™). 'LAMP' allows an organisation to highlight potential losses before they occur and to efficiently track actual losses when they do occur.

Avoiding and/or reducing the cost of loss can be seen as a source of profit as an organisation spends less than it would have done on insurance, or on internal funding or staff resources. Although accidental losses are unforeseen and unplanned, there are methods which can make events more predictable. The more predictable an event, the less risk is involved, and planned, preventative or mitigation measures can be taken and expenses can be estimated and budgeted.

It is this process to make loss more predictable and therefore avoidable that is at the heart of ‘LAMP’.

‘LAMP’ is based on a formula. The cost of positive risk avoidance measures is offset against the potential cost of exposure to an unmanaged accident that an organisation might have.

The UK Health and Safety Executive estimate the average cost of a lost time accident involving employee absence of work for 3+ days to be £50,000.

This estimated cost can come from exposures to the following elements of loss expense:

• Actual damages to physical assets to repair or replace.
• Increase in expenses or reduction of revenue due to loss.
• Cost of investigation, legal fees, fines and awarded judgments.
• Loss of worker productivity and adverse publicity and public opinion.
• Higher potential insurance premiums.
• Payments made due to the death, disability or resignation of employees.

These costs come directly off the organisation’s ‘bottom line’ and can turn profit into loss very quickly. Using LAMP™ will assist an organisation in its efforts to avoid, or at least reduce its loss cost exposure.

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