Addressing These Key Issues Can Help Improve Your Risk Management Plan

October 24, 2019

A risk management plan has become an integral part of many companies. Risk management strategies allow for improved situational awareness, clear directions in the event of an accident and have the capacity to help reduce insurance claims.

However, effective plans require several key steps, and forgetting a single element can potentially throw the entire plan off track. In order to prevent this from happening, all companies — especially those in high-risk industries like construction, manufacturing and healthcare — should focus on a comprehensive approach to risk management.

The importance of considering risk velocity
Hazards within a company can impact operations in numerous ways. Assessing these probabilities and creating reasonable solutions to prevent problems is at the heart of effective enterprise risk management.

To most effectively asses risk probability, consider risk velocity. When defined, this means the speed at which a risk affects an organization, first by appearing then impacting it. Looking at potential issues in this manner can help address problems and prevent loss — as risks that present themselves over a short timeframe require a fundamentally different type of mitigation than long-term risks.

Amerisure’s risk management consultants are experts in judging risk velocity and can outline crucial strategies to assist your organization in mitigating hazards and creating a safe, secure operation.  

Keep risk management companywide
A risk management plan that isn’t spread throughout the entire company is less likely to be successful than one that is. Managers must find a way to incorporate strategies into every aspect of the business.
The biggest benefit of company-wide risk management? It can help prevent problems from spreading quickly. When all employees know the plan, it becomes easier for those involved to take the proper steps to limit loss.

In order to achieve this, businesses should use the same methods of risk management across the entire company, analyze loss data on a large scale and put measures in place to share information.
Amerisure can ensure your proactive approach to safety encompasses your entire organization. Talk to an Amerisure agency today about scheduling a risk assessment and access to risk management training and materials.