Risk Management
Risk Management and Insurance
There is often a great deal of mystery surrounding the topic of
risk management. At Tysers we try to adopt a simple and straight
forward approach.
If your insurer believes you have taken steps to identify, measure
and control the risks that threaten your property, revenue and
potential liabilities we can negotiate far more competitive
premiums and policy coverage on your behalf.
What is Risk Management
Risk management is the identification,
measurement and economic control of the risks that threaten the
assets and earnings of a business. A risk is defined as the peril
or hazard that is covered by the insurance policy.
You need to decide whether you have adequate controls in place to
manage the significant risks that your business faces. You will
also need to consider whether you could cost-effectively do more to
control risks, including evaluation of your health and safety
standards and assessment of measures in place to protect your
property against fire, theft, flood etc.
The diagram below illustrates the key stages of the risk management
process. Adopting a risk management approach will protect your
business, add value to the business and support achievement of your
objectives by:
* Providing a framework that enables future
activity to take place in a consistent and controlled manner
* Improving decision-making, planning and
prioritisation by comprehensive and structured understanding of the
threats to your business activities
* Contributing to the more efficient
allocation and use of capital and resources
* Reducing volatility in the non-essential
areas of the business
* Protecting and enhancing assets and
company image
* Developing and supporting people and
knowledge base, and
* Optimising operational efficiency within
your business
Adopting the risk management approach will
help you concentrate on reducing the likelihood and consequences of
a loss, as well as evaluate what you can do to minimise the extent
of damage and the cost of disruption. Business continuity planning
of this type is a key part of the risk management process, and you
should carefully consider how you would continue your business
processes after a serious loss that causes disruption to normal
operations. Adequate training of staff and periodic practice of the
business continuity procedures is essential.
In relation to those risks that can be insured, the intention of
risk management is to reduce the potential for insurance claims and
ensure that the impact of any losses that do occur are kept to a
minimum.
Risk Management Standard
Please Click here to down
load a copy of the The Risk Management Standard.
The Risk Management Standard is a best practice guide recognised
throughout Europe and internationally. Developed by The Association
of Insurance and Risk Managers (AIRMIC), the Institute of Risk
Management (IRM) and Association of Local Authority Risk Managers
(ALARM), it has been translated into several languages.