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Preventive controls are the type of controls designed to limit the possibility of an undesirable outcome or help stop the possibility of such outcomes (Hopkin, 2017). These control measures can include a substitution of less hazardous material with hazardous or enclosed fumes to protect the employees from the possible exposure to the fumes or dust at work to prevent the health risk involved in health safety risks. Simultaneously, limitation of authorization and specifying tasks within an organization or pre-employment screening of the potential staff can be described as the preventive controls towards fraud risks control (Hopkin, 2017). Preventive controls are still the most relevant and effective risk control actions since they are taken before the risk occurs.
Being the most important risk control measure, every organization always strives to place the most effective risk controls. However, eliminating risks might not be possible on a cost-effective basis, in the organization’s desired future, or even in the continuity of some activities within the organization. The one major advantage of preventive controls is that it eliminates the risk and no further consideration of such risk (Hopkin, 2017). Still, experts argue that this might be impossible or less cost-effective due to operational reasons. The disadvantage of these controls is that an organization can lose an effective operation or a system for less effective while trying to enforce the preventive controls.
Preventive controls are essential in eliminating risks that might happen due to some negligence in workplaces by sealing the loopholes that can lead to risk effects. It ensures that every material or activity undertaken is safe for use by the user. Therefore, the preventive risk is the most effective in controlling losses.
Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating, and implementing effective risk management. Kogan Page Publishers.
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The directive controls of hazard risks are made to ensure that there is an achievement of a particular outcome (Hopkin, 2017). The directive control entails giving directions to individuals on how to ensure that the occurrence of losses is halted. The enhancement of risk control in this category involves training and supervision for the purpose of enforcing procedures, improved welfare facilities, and personal protective equipment (Hopkin, 2017). When training is conducted, individuals are equipped with the necessary knowledge needed to undertake their job activities. The impartation of knowledge to individuals promotes efficiency in their activities through adherence to the essential procedures, reducing errors that may occur and causing losses. Supervision is also another approach that entails supervisors following up with the employees as they undertake their activities to ensure that the operations’ right procedures are followed effectively. This is essential in ensuring that the desired outcome is attained. Still, in the directive category, personal protective equipment is provided to ensure that the workers are protected from risks related to their health, e.g., in the case of infectious diseases. Besides, directive control entails the improvement of welfare facilities to ensure that efficiency is maintained hence controlling losses.
Directive control is impactful in controlling risks as it prevents any loophole that can be as a result of defying procedures, thus leading to losses. It ensures that all the employees in the sector know what is needed and are well-equipped with all they need to limit risks. Directive control is, therefore, effective in controlling losses.
Hopkin, P. (2017). Fundamentals of risk management: Understanding, evaluating, and implementing effective risk management (4th ed.). Kogan Page Publishers.