by Chris Smith
Risk is a word that many people associate with Insurance. People go to school for Risk Management degrees, which mostly pertain to insurance. But what is risk and why, as a business, should we be looking at risk in a very different way than in the past?
I met with a client yesterday to discuss the potential for starting a Benefits program for his employees. We talked a little about the in’s and out’s of health insurance, the Affordable Care Act and details pertinent to his business, but the majority of the conversation was about managing risk as it relates to Benefits and HR. We discussed how benefits could be used to attract and retain top talent, how to get the most from your benefits dollars, and how to properly enroll employees so it does not cause heartburn.
So much of the work we do with clients today has nothing to do with Insurance. Many of the problems employers are having are in the area of HR. Things like onboarding, orientation and training, Corrective actions and firing an employee, and dealing with employee engagement issues. The list goes on and on. But there are many other areas like disaster recovery, OSHA compliance and consequences of the failure to do so, DOT compliance, Contract review, use of independent contractors, Affordable Care Act Compliance. Are you taking steps to manage these areas or are you confident enough in your methods to feel like you can defend yourself in court? How much time will be spent dealing with these issues after the law suit or penalties occur? There will always be areas of risk that deal with insurance and that insurance is meant to cover. But some of the highest potential costs to a business cannot be covered by insurance. If they aren’t covered by insurance, then where does the money come from to deal with them when they occur?
This is why we at RGVI have shifted our focus from Insurance to helping our clients manage their risk. Have you ever done a Risk Assessment on your business to determine your areas of vulnerability? Do you feel like you have done a good job in managing your risk? What risks are lurking out there that you have not considered or are waiting for the chance to strike and threaten your profitability?
In today’s world, where things seem to be changing so quickly it is imperative that businesses know, appropriately prepare for and manage their risk well. Carriers are also looking to see how proactive you are in dealing with your risks. The business that is proactive about risk is better prepared to deal with it when the threat occurs, but, more importantly, they have taken steps ahead of time to help prevent the problem from occurring in the first place. Insurance Companies notice! What are you doing in your business to help them notice what you want them to? What is your agent doing to help you see the risks you are facing?
If you would like to learn more about how RGVI can help you assess and prepare for the risks in your business, please contact us at firstname.lastname@example.org.