When operating a business enterprise, a risk exists in every aspect, from manufacturing or selling your product to dealing with employees, suppliers, and distributors. How do you anticipate potential problems before they happen for your own business? Once you’ve identified a potential problem, how might you manage it to avoid a devastating financial loss?
Most companies must consider how their business may have changed over time before buying the same insurance coverage year after year. Likewise, many companies insist on repeatedly bidding out the exact coverage without appreciating that far better and less expensive alternatives may be available.
A thorough risk management process can help your company avoid making bad decisions and help you avoid or minimize the devastating financial consequences of unavoidable accidents.
Most companies are not large enough to staff a full-time qualified risk management department. As a result, there is no experienced on-staff expert to determine:
- What kind of insurance should you buy and how much should you pay?
- In what areas should you consider not buying insurance?
- How can you transfer risk to others, so you can avoid claims and avoid paying too much for your insurance?
- What can you do to properly manage claims after they happen?
- In what areas are you uninsured, and how do you manage that risk at minimal cost?
- How do other companies like yours deal with insurance and risk?
- If you develop a new product, or commence work in a different area, what risk do you face and how should you handle it?
Gallant has a high percentage of employees credentialed as Certified Risk Managers. As a result, their capabilities in this area are unparalleled. And, because they deal with many clients and industries, they appreciate the risks you face and can offer suggestions and alternatives to help you control risk without having to buy more insurance.
How Can a Risk Management Plan Help Your Business?
All businesses encounter risk, but with a risk management plan in place, you can manage these risks by identifying potential problems before they happen and be better prepared to deal with them when they do.
A risk management plan can work to help your business by analyzing the best areas to place resources, such as purchasing insurance policies for higher risk elements, and where you can save money.
Additionally, a risk management plan can create a more cohesive brand by communicating your business’s reliable and resourceful nature. This can make your company more appealing to employees, other businesses, and lenders.Click for a Risk Management Review
Risk Management FAQ
How is a risk management plan different from purchasing insurance?
A risk management plan is essentially an analysis of your business. Your Certified Risk Manager (CRM) will assess your business from top to bottom to provide a clear picture of where your business needs protection and from where you can reallocate funds to reinforce the weak areas. This reinforcement can come in the form of an insurance policy, which your CRM can help you choose.
What types of risks will my risk management plan consider?
There are three main types of business risk to assess:
- Hazard risks, which are often anything that is a physical loss, including slips and falls, job site injuries, natural disasters, etc.
- Business risks refer to the chance of problems that will affect the finances and operations of the company, including compliance issues, sexual misconduct, processes and procedures, and retention.
- Strategic risks affect the value of the company. Strategic risks often are considered long-term and can take years to come to fruition. Some examples include your business reputation, high employee turnover, or low productivity. The solutions for these issues must be planned in advance, so it is best to meet with your CRM early to create your plan as soon as possible.
Getting into the specifics of your business will probably reveal that you have certain risks that fall under multiple of the above categories, which is why your CRM can help you assess how to mitigate those risks in the most cost-effective manner.
How often do I need to review my risk management plan?
It’s a good idea to review your risk management plan:
- If there is a significant change to the workplace processes or design. If you move to a new location or change standard operating procedures, you might need to review.
- Whenever new machinery, substances, or procedures are introduced. If you install new equipment that increases productivity but might have a greater risk for workplace injury, this will affect your overall risk management plan.
- If there is an injury or accident. Workplace hazards are never a good thing, so if an accident does occur, it is essential to review your plan to ensure it doesn’t happen again.
Otherwise, it is recommended that you review your risk management plan once every three years or so, as changes that you might need to be made aware of can occur that your CRM can help you understand. Additionally, you can continually reassess your plan if you feel that it is inadequate for any reason.
Risk Management Services in Southern California
Gallant Risk & Insurance Services, LLC., located in Corona, California, offers risk management plans and assessment services for your business.
Call (951) 368-0700 to reach our Corona, California, insurance office and learn more about how risk management plans can protect your business from risk through customized analysis and insurance policies.