Risk Management Strategies to Improve Operations and Control Costs
Risk exposure comes in many forms. The process of managing this risk begins with understanding which risks are most likely to jeopardize your business. Once the primary risks have been identified, it’s time to develop practices to combat them. Though it’s impossible to eliminate all potential risks, creating a risk management plan will help to make them much less likely and less punishing for your organization.
- Evaluate Your Risk – It’s never too early to evaluate potential risks. As you create your business plan for your new company you can assess, evaluate, and plan for risks in all aspects of your organization: production, marketing, human resources, and real estate.
- Acquire Liability Coverages – After you have completed your risk evaluation, you should determine the types of business insurance coverage you need to protect your company, including liability insurance.
- Develop Your Plan – Purchasing liability insurance isn’t the only aspect of managing risk. You should also create a risk management plan that lists each potential risk and outlines how your company intends to handle each risk.
- Implement the Plan – Part of your risk management plan should include training your employees about company risk management policies. This way if a risk should develop, employees can take steps right away to help mitigate the risk.
- Execute, Measure, Refine – Your company’s risk management plan, insurance coverage and employee training should be routinely evaluated and updated to make sure it is relevant to the company’s current needs and potential risks.
If your company doesn’t have a current risk management plan, or you believe your liability coverages may merit review, contact the experts at The Reilly Company.