Rolling Stone Co. (RSC) owns a high-rise office building with glass cladding (a protective covering) and adjacent factory premises, and it operates from these factory premises. RSC refurbishes and sells electric motors. Its processes include stripping down old motors, sandblasting motor casings, armature winding, varnishing, spray-painting and assembly.

In order to make a risk management statement, the risk manager will carry out a physical inspection to familiarize himself or herself with the factory layout and processes. The risk management process of identification will consist of listing all manufacturing processes using a checklist to ensure that he or she asks all the relevant questions. The checklist will also include questions such as what flammable liquids are used, in what quantities, and where are they stored?

During the identification step of the risk management process for RSC, the risk manager identifies the following insurable risks: