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.