Focused analysis of your operations, facilities, job functions and more backed by resources to ensure your business can both endure and thrive in the event of unforeseen circumstances as well as pursue potentially advantageous opportunities.
- Loss Control Services
- Human Resource Services
The IRMS Risk Management Solution
As Risk Managers, we know that “Simply Selling Insurance Is Not Enough” to adequately manage your risk of financial loss.
The role of insurance in the Risk Management Process is only when “all else fails.” A description of the steps in the risk management process illustrates this point:
1. Identify and Analyze exposures to loss.
- Risk Identification: What events pose a financial risk?
- Risk Measurement: How much could these events cost?
2. Examine alternative risk management techniques.
- Risk Avoidance: Is it possible and practical to avoid these events?
- Loss Prevention: Can the financial risk be mitigated or abated?
- Liability Transfer: Can the financial risk be transferred to other entities?
- Risk Retention: Can the financial risk be retained?
- Insurance: Insured financial risk that cannot be avoided, prevented, transferred or retained.
3. Select the risk management techniques that are appropriate for you.
4. Implement your risk management program.
5. Monitor the effectiveness of your risk management program.Although insurance is a key part of the risk management process, it is only that – a part. When accidents or lawsuits occur, insurance pays some expenses – when the cause is covered by the policy. The fact is, however, that you face many risks for which insurance policies offer no protection, including:
- Catastrophic uninsured or underinsured claims.
- Increased insurance premiums due to claims activity.
- Reduced productivity while employees recover from accidents.
- Loss of key employees in a competitive labor market.
- Erosion of market share caused by high expenses.
in.sur.ance: (in shoor’ens) n. – 1. the contractual mechanism to transfer the adverse financial effects of accidental losses to an insurer.
risk man.age.ment (risk man’ij ment) n. – 1. the administrative process of planning, organizing and controlling the activities of an organization in order to avoid accidental losses, and to minimize the adverse financial effects of losses that cannot be avoided.