Risk management is the process of identifying, monitoring and managing potential risks in order to minimize the negative impact they may have on an organization.
When it comes to insurance risk management, it’s “back to the basics” for most companies. What are the risks that we want to avoid? What processes must we have in place to avoid these risks? If we can’t avoid these risks altogether, how do we lower the impact on our cost structure? If a risk turns into an expense-a claim, for example-how do we manage that process to lower the financial impact? What structure should we put in place to avoid these costs in the future?
Organizations must implement clear, simple, and achievable insurance and compliance procedures to help avoid risks or control costs once an event occurs.
Insurance risk management is ongoing and does not end when risks are identified and mitigated by a process. Risk constantly evolves, and your process to identify and mitigate risk must evolve as well.
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