Risk Management You can help control the cost of your insurance premiums and improve your business operations by adopting risk management strategies. Risk awareness and mitigation activities can add up to a safer workplace as well as positive brand recognition. What Is Risk? Risk, in insurance terms, is the possibility that a loss or other adverse event may potentially interfere with an organization's ability to fulfill its objectives. Risk is also an event for which an insurance claim may be submitted. Why Manage Risk?Regardless of the size of your business, risk management strategies are essential because:People are now more likely to sue in the event of even a minor occurrence. Taking the steps to reduce injuries could help in defending against a claim.Courts are often sympathetic to injured claimants and often give them the benefit of the doubt.Organizations as well as individuals who give professional advice are held to very high standards.People are more aware of the level of service that they can expect, and the recourse they can take if they have been wronged.Corporate and non-profit organizations are often being held directly liable for the actions of their employees, volunteers and directors and officers.Big businesses are perceived as having deep pockets, many assets and high insurance policy limits. Corporations are sometimes targeted with inflated or fraudulent claims.Insurance and Risk Management Can Help Improve Business Operations Insurance is also a valuable risk-financing tool. Few organizations have the reserves or funds necessary to take on all risk themselves and pay the total costs following a loss. Purchasing insurance, however, is not a complete risk management plan. A thorough and thoughtful risk management plan is the commitment to prevent harm. Risk management also addresses many risks that are not insurable, including brand integrity, potential loss of tax-exempt status for volunteer groups, public goodwill and continuing donor support. By integrating risk prevention activities into your annual operations plan, you may improve efficiencies and increase capacity.Bottom-Line Benefits of Managing Risk Risk management provides a clear and structured approach to identifying risks. Understanding all known and anticipated risks allows an organization to measure and prioritize them as well as take the appropriate actions to reduce the potential for losses. An organization with an effective risk management plan in place can also:Save resources such as time, assets, income, property and peopleProtect its reputation and public imagePrevent or reduce legal liability and increase the stability of operationsProtect people from harm Protect the environmentEnhance its ability to prepare for circumstances that could interrupt business Reduce liabilitiesAssist in clearly defining insurance needsWhile it's not possible to eliminate all potential risks, a risk management plan demonstrates your organization's commitment to loss reduction and prevention. Ultimately, it can make your organization a better risk to insure. Talk to your insurance representative for specific advice about coverage and risk management best practices that suit your industry. Related ServicesBusiness InterruptionYou can help control the cost of your insurance premiums and improve your business operations by adopting risk management strategies. Risk awareness and mitigation activities can add up to a safer workplace as well as positive brand recognition.Cyber RiskA cyber attack is not just inconvenient and expensive, it can be an existential threat to an organization. For companies that sell products through e-commerce or maintain electronic data on their customers, a systems breach involving this information can cripple or ruin a business. Commercial Property InsuranceProtecting your commercial property is critical to your businesses financial stability. Directors and Officers LiabilityDirectors and officers have a duty to exercise due diligence in overseeing the management of the organization that they serve. They are required to act in good faith and in the best interest of the organization. Claims or potential claims must be promptly reported. Errors and Omissions InsuranceProfessional liability – also known as errors and omissions – responds to claims arising from acts of professional negligence. Fleet LiabilityPreventive maintenance is an essential part of an effective fleet risk-management program. Your organization may be held liable for a collision if a driver operates a vehicle for business purposes. Incident and Accident ReportingA formal accident and incident reporting procedure helps employees to record essential details immediately after an event. Liquor LiabilityAnyone involved in the serving of alcohol could be held liable for damages or injuries that occurred when alcohol is deemed to have been a contributing factor in the incident. On Premise Loss Prevention Commercial general liability insurance policies normally cover property damage and injury suffered by a third party. Policies and ProceduresReduce liability risks: document and train employees and volunteers in risk management best practices. Protecting yourself from the liabilities of others Some people try to make a quick dollar through frivolous lawsuits. Understand your responsibilities and protect your business’ bottom line Special Events Liability Some people try to make a quick dollar through frivolous lawsuits. Understand your responsibilities and protect your business’ bottom lineSlip Trip and FallRegularly inspect and maintain your premises to keep them safe and free from hazards. If you fail to provide a reasonable standard of care to keep your premises hazard-free, you may be held liable for a slip, trip or fall. Useful LinksBuyer Beware: Read Your Policy Carefully Informed buyers carefully review their insurance policy and policy limits. Know what to look for when reviewing all sections of auto, home or business policies.How Premiums Are CalculatedWithin reasonable limits, some of which are prescribed by law, your auto, home and/or business insurance premium is calculated to reflect the probability that you will suffer a claimable loss. Insurance VendorsInsurance is a significant financial investment so it’s worthwhile to learn about your buying options. Cost ControlThere are many ways you can control insurance costs and lower your premium. Shop around and ask your insurance representative for more information about the options below and other savings opportunities.