Risk is inherent in business. Although there are those that are considered “acceptable,” meaning the cost to eliminate the risk would outweigh the benefits, there are those that need to be dealt with immediately, or else they could have a catastrophic impact on your business.
Risk management is a mitigation process that factors in elements you can control in order to eliminate, avoid, reduce, or transfer risks. Developing a risk management plan will allow your business to effectively manage risk, and ensures that the business will continue to operate efficiently. Here are four steps your business can take towards developing a successful risk management program.
- Identify: Request an independent insurance agent to conduct a risk management audit of your business so that you can gather a detailed outline of what risks your company may be exposed to.
- Analyze: Using the information gathered from this audit, outline the risks that will require action and define goals that can measure your progress.
- Implement: Decide which risks can be avoided, reduced, or retained, and for those that cannot, research transferring the responsibility over to a third party. Contact an independent agent for information on specialized products that will protect your business.
- Monitor: By establishing goals, you can determine which goals were met and what needs to happen next. Keep in mind that as your business changes, it will be exposed to new risks, so it is important to continually monitor the results of your program.
To schedule a free risk management audit of your business, contact McGrath Insurance Group at 800-342-3859 or www.mcgrathinsurance.com. For more information on risk mitigation, download our free white paper here.
*This article is written for informational purposes only and should not be construed as providing legal advice.