Risk Management
Our sister company, Garratt Son & Flowerdew, are specialists in the area of risk management. Risk management is an advisory service which ultimately helps to lower your insurance premiums.
Most UK companies cannot afford to employ in-house advisors in the various areas required (such as Health & Safety, Fire, Commercial Law, etc.). However, effective and affordable help is at hand: Garratt Son & Flowerdew has established a network of professionals in a variety of disciplines to cater for virtually every risk management requirement.
Risk management can be considered in terms of traditional risks (typically, risks such as fire, natural disasters, accidents, deaths, lawsuits, etc.), financial risks (risks that can be managed through the use of certain financial tools) and intangible risks (ie. a risk that has a 100% probability of occurring but remains unidentified due to a lack of ability on the part of the company). Intangible risk can adversely effect productivity, cost effectiveness, profitability, production or service quality, reputation and brand image, and it may take the form of:
- knowledge risk (occurring when deficient knowledge is applied within a business)
- relationship risk (problems arising from the ineffectiveness of collaboration between parties)
- process engagement risk (operational ineffectiveness)
When conducting risk management, we focus on:
- identifying what could go wrong and whether a potential risk is present
- assessing the risk and measuring it in terms of likelihood and potential severity
- prioritising multiple risks in terms of greatest risk and greatest probability
- implementing a strategy or strategies to manage the risks
Ultimately, a risk management strategy will look to achieve one or more of the following outcomes (the 4 T’s):
- tolerate: risk retention – poses a greater threat than the other options but also may well allow a potential gain that the other options may prohibit
- treat: risk mitigation – reduce the risk by putting certain safety measures in place, for example, such as a sprinkler system where fire risk is significant
- terminate: risk elimination / avoidance – the most extreme course of action: avoiding the risk entirely may well totally prohibit the potential gains from the said course of action (for example, deciding not to buy particular premises)
- transfer: arrange insurance cover to transfer the potential financial impact risk to another party
By considering these points, when it comes to organising the latter (risk transfer) and arranging insurance cover, the risk management process will have worked effectively to reduce your premiums.
An effective risk management policy can often be the difference between business success and failure. It is therefore essential that every company seriously considers its position with regard to potential risks and sufficiently safeguards itself.
Of particular significance to many businesses are risk management assessments in the following areas:
Health & Safety
Human Resources
Business Continuity Planning
Fleet Risk Management
Commercial Law
Call Garratts Insurance Brokers today on 01772 55 55 76 or alternatively click here to email us for further information.