How can good Risk Management help save your business money?
2nd March 2023
Risk is a key part of our lives. As human beings we have needed to take calculated risks in order to develop and evolve… and the same ethos applies to business development.
In today’s modern world of fast-moving digital technology, risks evolve quickly meaning companies are required to keep up-to-speed to ensure their risks are documented and managed effectively.
Risk management involves analysing, understanding, and addressing risk to ensure companies and other organisations achieve their objectives. This process enables companies to anticipate potential threats and take proactive steps to prevent or minimize their impact.
Effective risk management planning helps maintain consistent and efficient operations, meaning more satisfied and happy customers/clients, and resulting in a healthier bottom line.
The value in supporting good practice
Posing the question of the value of risk management very much depends on who is asking the question and what their previous experience may have been. Clients are more likely to appreciate risk management good practices if they have already had a bad experience, such as a repudiated fire loss claim or entanglements with the HSE.
Key reasons that every business needs risk planning
- Risk planning enables a business to identify risks early and reduce them, or even eradicate them completely.
- It protects a company’s resources.
- It helps to protect a company’s people.
- Risk planning is financially shrewd, as it can help to reduce insurance premiums and reassure lenders when applications for extended credit lines and loans are submitted.
- Ultimately, risk planning helps businesses to prepare for the unexpected, ensuring that all relevant company information and the process of disaster recovery is already in place, making any relevant insurance claim a lot easier.
We believe that risk management is not just about avoiding losses, but also about seizing opportunities. By adopting a proactive and strategic approach to risk management, companies can identify and capitalise on emerging trends and market shifts, and stay ahead of their competitors.
Risk management as an ongoing business process
Risk management and planning is an ongoing process. As a company develops, grows and evolves new risks are potentially created. A sound risk management plan will enable a company to update and monitor any changes easily and efficiently.
The continuous process of risk management can be seen in the diagram below:
How can COHIBL help with your Risk Management?
At COHIBL, our risk management services can help you identify property protection and health & safety management issues. By carrying out an assessment at your workplace, you’ll be able to remedy hazards that may impact on your claims record, and the reputation of your company.
Our risk management expert, Steve Haines, works closely with companies to develop customised risk management plans that are tailored to their specific needs and goals. Utilising the latest risk assessment tools and methodologies, he could help you to identify potential risks and evaluate their likelihood and impact. He could also help you to prioritise the risks based on their severity and develop risk mitigation strategies that are both effective and cost-efficient.
Our risk management offering helps prevent losses and accidents before they happen, making it better for your employees, your business and ultimately your bottom line, allowing you to focus on what matters.