[SUBTITLE]A Balanced Service from Russell Scanlan[ENDSUBTITLE]
Sound risk management involves a balance of financial protection, usually through insurance, with practical measures to eliminate or reduce the potential for disruptive or costly events. Both are essential to protect the company balance sheet. Insurance converts unquantifiable future losses into a known cost. Practical measures reduce the risks in the first place. Key benefits of a risk management programme are:
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Any business manager who has been involved in litigation or dispute knows how distracting the experience can be. Normal management tasks are suddenly interrupted by a new agenda, which cannot be deferred or delegated. Problems of this sort always filter up to the top and sidetrack the people with the greatest responsibility for achieving business progress. Financial protection against disputes may be essential but avoidance is preferable so this is a key area for the practical programme. It will make the business safer to own and easier to manage.
Compliance is another key issue for the well-managed business. Our Health & Safety and Environmental laws demand awareness, commitment and an organised approach without which the business and its directors are exposed to prosecution, cost and adverse publicity. A sound risk management programme should also help to address compliance issues.
A Business Continuity Plan is increasingly seen as an essential for the well-managed business. The failure rate of businesses that do not plan for disruptive events is alarmingly high causing key customers, insurers and lenders, all of whom underpin the business, to increasingly call for evidence of contingency planning. For the business owner, knowing that the survival rate of businesses which suffer a major fire can be as low as 20%, should be sufficient to demonstrate that a Business Continuity Plan is a management essential.
Where risk reduction measures reduce the exposure of the company’s insurers, it follows that this should be rewarded with lower premium rates. Insurers understand and recognise this in their price negotiations. The long-term cost benefit of a risk management programme adds a financial incentive to a logical business decision.
Russell Scanlan is able to help their clients to implement a practical risk management programme that will also support the insurance programme. Our Risk Analysis Service is designed to help and support you in achieving a balanced and cost-effective approach to risk.
Using powerful software we can help you to:
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Contact [LINK][LINKURL]http://www.rsib.co.uk/Risk-Management_4_contactlist.html[ENDLINKURL]Mike Reed[ENDLINK] on 0115 983 8806 for further details
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