What we do:
Risk Management is part of any personal or business plan, which is why learning how to cope with it is vital.
- Risk is the positive or negative uncertainty arising from a given event.
- Risk management is a plan to ensure negative uncertainty does not prevent desired success.
As a responsible manager or business owner, you need to be aware of your risks. Does this mean that you should try to address each and every risk that your business might face? Probably not – in all but the most critical environments, this can be much too expensive, both in time and resources.
Instead, you need to prioritize risks. If you do this effectively, you can focus the majority of your time and effort on the most important risks. Therefore, before we go running off to the corner insurance agent’s office to buy a policy, we should understand our role in risk management. Even if we choose to have the insurance company take on our risks, we are going to want to prevent, reduce and transfer as many of these risks. We can minimize the amount and number of claims an insurance company may have to pay, in order to keep insurance costs down and maintain productivity.