Risk Management Identification and implementation – Do you know the steps?
Step 1
Identify your business risk Exposures subject to loss.
These exposures can be identified through your financial statement, checklists, and discussions with risk management consultants or insurance agents.
Types of property subject to exposure, valuation of the property, perils that can lead to loss, and replacement of the property need to be identified:
1. Liability to others who might be harmed from the loss.
2. Revenues and other expenses lost during the covered loss.
3. Loss to human resources such as workers injuries, disability, death, retirement, and turnover.
4. Loss from outside sources resulting from change in price, contingent exposures from outside suppliers and vendors.
5. Automobile losses.
6. Criminal activity.
Step 2
Select the best options to handle each of these exposures:
• Avoidance-don’t take on risk or activities that are too hazardous.
• Reduce or minimize the risk-look to see how the possibility of risk can be avoided.
• Risk retention – using deductibles and retention of risk to control costs.
• Transferring risk – utilizing insurance and non-insurance options.
Step 3
Implement the risk management plans you have chosen.
Step 4
• Monitor the results
• Risk management techniques can be changed so the results of your techniques have a positive impact on your business with accurate and identifiable results.
We can discuss the insurance, retention and non-insurance options at your convenience. Just give Roseanne Gedman a call at 908-598-7800