Keys to Effective Risk Management

Keys to effective risk management

Every element of business operations, from major decisions and new ventures to routine tasks, contain risk. To develop the best possible risk management program, businesses must identify their unique exposures to manage potential risks.

Because risk is inherent in every day procedures, risks come from various sources including health and safety, financial markets, planning, business continuity, workplace violence and natural disasters. Risk management is a fast- moving discipline and standards are updated frequently. These standards are set to establish a common view on processes, frameworks and practices to


mitigate the potential of risk. Here are a few keys to effective risk management.

Keys to effective risk management:

  • Proactive rather than reactive- For example; analyze and inspect your business workplace for potential hazards. Proactive risk management employs certain measures to help prevent events from occurring before an employee is injured.
  • Hire industry experts with loss experience & trend analysis tools- For example; by hiring an expert, he/she can perform an analysis of previous claims history to identify and target what is increasing your claims cost and how to effectively reduce your total cost of risk.
  • Implement regular safety reviews & ongoing programs- For example; at staff meetings each month, incorporate safety reminders such as handouts and encourage employees to ask questions and participate in discussion. By soliciting comments and feedback and involving the staff, you will be able to better assess if the training is meeting their needs.
  • Conduct regular employee in-service training for various industry specific risks- For example; day care center employees must meet the qualifications of CPR and First Aid training. By conducting regular/annual in-service training, employees will attain and improve on their skill sets.

By implementing these keys to effective risk management, your workplace and employees will create a safety culture which will in turn also to help your workplace become more effective and productive.

To learn more about effective risk management, contact any of us at Propel.

Propel Insurance