Risk Management Study for Machine breakdown and Loss of profits
The result of even a single machinery breakdown in an industry has a huge impact on the production process and the business as a whole. Not to mention tangible costs such as that for machinery replacements, the industry faces intangible expenses like the loss of a client, customer dissatisfaction etc.
CMSRSL has conducted risk management studies for the manufacturing industry assessing the risks associated with each machinery, its downtime, losses that would be incurred over a time period and risk financing strategies.
Our Typical Scope of work includes the following:
- To study the loss potential of machinery breakdown and their impact on business interruption
- to identify the critical machinery for insurance purposes and their interdependence
- to identify the stand by machinery and availability of spares for the machinery
- to assess the potential and probability of failure of critical machinery based on age, maintenance practices, past experience etc
- to comment/suggest on the adequacy of coverage and indemnity period in case MLOP is required
- to study the existing covers and review the same
- cost benefit analysis for taking MLOP cover considering the alternate options available