What is an example of a proactive risk control measure?

Prepare for the Operational Risk Management Exam with multiple choice questions, expert explanations, and comprehensive study tips. Enhance your risk management skills and boost your confidence to excel on exam day!

Regular safety drills are an excellent example of a proactive risk control measure because they are designed to anticipate potential emergencies or safety issues and prepare individuals to respond effectively before an actual incident occurs. By conducting these drills, organizations not only train their employees on how to react but also identify weaknesses in their emergency procedures that could be improved. This proactive approach helps build a culture of safety, increases preparedness, and significantly reduces the likelihood or impact of a safety incident when it arises.

In contrast, purchasing insurance is typically a reactive measure since it provides financial protection after a loss has occurred rather than preventing it. Crisis management planning, while important for dealing with situations that have already developed, may also be considered more reactive as it focuses on managing the aftermath of an incident. Investigating past incidents similarly serves a more reactive purpose by analyzing what went wrong in the past rather than preventing future occurrences. Thus, regular safety drills stand out as they are aimed directly at preventing incidents before they happen.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy