Risk Management Overview

Every business is exposed to risks daily. Risk is an industry term used to describe a potential for an incident that could result in physical damage/injury and or an economic loss to an organization. These risks take many forms affecting your employees, facilities, automobiles, the general public, your clients and “property of others” under your care custody or control. The list of risk is almost endless and each risk presents an economic loss potential to your organization

Risk Management is a business disciplinant that identifies risks and helps organizations develop a strategy for managing those risks. Management strategies may range from complete avoidance to contractually transferring the economic impact (insurance policy). Often risk avoidance is not feasible and contractual transfers are expensive and typically not all inclusive.

How your organization manages your risks will be a combination of your corporate philosophy, your appetite and financial ability to absorb the economic impact of the risk, the legal environment in the areas you operate in and your knowledge of risk management strategies.