Performing a business risk management assessment is vital to ensuring that you are prepared for the unexpected as well as identifying what is in or out of your control. Even if your business currently operates smoothly, things can change in an instant. Once your assessment findings are gathered, you can identify the insurance and risk management solutions which will best support your business.
Identify the Extent of Your Liability
It is easy to get so caught up in your daily routine that you don’t notice the potential for risk, or your areas of opportunity. By performing a business risk management assessment you can test and redesign your operations to reduce the likelihood of accidental loss. There are many areas in which your business may have risks. By identifying the most common risks in your industry and for your individual business, you will be able to customize your insurance and risk management solutions. While some businesses may be fine with standard liability insurance, others will need more comprehensive insurance coverage, such as the addition of product liability, professional liability, commercial liability, or commercial liability insurance.
Plan Your Recovery Strategy
Even if you have redesigned your operations to reduce the likelihood of risk, there will be times when unexpected events or accidents occur. By performing a business risk management assessment you can develop a plan of action to manage unplanned risks. This plan should be thorough, taking into account how each unexpected event will create a ripple effect in other areas of your business. A plan of recovery can be the difference between recovering quickly and struggling to get back on track.
Fine Tune Your Operations
Your business risk management assessment will allow you to improve your operations. While your employees are likely well-versed in their daily role, they may not understand the importance of things such as backing up data daily, planning for an alternate route when driving, or cross-training to ensure all bases are covered if a key player in your business quits or needs an extended leave of absence. An assessment will encourage management and your employees to think outside of the box to create in-house solutions in their day-to-day operations.
As your business grows, and as technology changes, it is important to reevaluate your insurance and risk management solutions to ensure they are current and up-to-date. While many potential risks are out of your control, performing a business risk management assessment will help to eliminate potential risks by improving upon your current operations and giving your company a more secure future. For professional risk management assessment services as well as risk management solutions, contact a representative at Allied Insurance Brokers.
*Allied does not deem this blog entry as a complete and thorough listing or overview of the above topic, and does not recommend it be primarily relied on. It only highlights some common issues and resolutions. For a thorough overview, please contact Allied’s Risk Engineering Division.