No matter the size of your business, you can benefit from using the basic techniques that major corporations employee to control their risks. Consider these examples:
- Plan and plan again. Develop a comprehensive business continuity plan based on a thorough knowledge of your operations. As part of this process, establish procedures to drive decision-making in an emergency and help ensure that information gets to the right people. Test the plan at regular intervals. “It’s a terrific training mechanism,” advises Jim Hedrick, Area Vice President of Business Continuity Planning at Arthur J. Gallagher & Co, (Cincinnati) “and also helps identify who shouldn’t be in your plan. Sometimes you have people in these events who just melt down because they can’t handle the stress.”
- Review supply chain risks. In an effort to cut costs, more and more companies have reduced the number of suppliers, changing their risk profile in the process.
- Define your “risk appetite.” Identify the risks your business faces and decide which ones you’re willing to assume and those that you prefer to ensure. You can use this process to benchmark yourself against the risk management practices of your competitors.
- Encourage return-to-work efforts. These programs can produce significant savings in workers compensation costs, allowing injured workers to participate in modified work assignments while they recover.
- Work with professional risk management organizations, such as the Risk and Insurance Management Society (RIMS). These groups can provide valuable continuing education and networking activities.
As risk management professionals, we can provide you with a comprehensive review of your program and recommend revisions – free of charge, of course. We’re always here to help.
