A risk management program may seem like an exaggerated strategy for a small business to consider; yet such a plan has a place from business planning through insurance to operations planning. Risk management programs provide both the strategic basis and the operational structure for handling crisis within your company.

Why Risk Control?

OSHA estimates that businesses spend $170 billion a year on costs associated with occupational injuries and illnesses – expenditures that come straight out of company profits. In contrast, workplaces that establish good health and safety management programs can reduce these costs by 20 to 40 percent. Proper risk management provides the consistency and reliability needed to build strong safety cultures while growing your business.

Financial Considerations

Implementing a risk management program may be welcome news to your banker, or insurance agent. Both are risk managers by profession, so you may see a banker willing to increase credit lines, while an insurance broker can affordably customize your coverage based on a well-designed risk program. Having a risk management program may aid you in proving due diligence in legal action, potentially limiting and protecting your liability in case of a lawsuit.

Other Benefits

The presence of an active risk management program speaks volume about your company’s brand. Risk management programs that identify and prioritize key risks that are likely to occur, drastically improve your company’s chances to plan and respond. This in turn saves you staff hours away from the core efforts of your business. For example, health and safety components of your program may address ergonomics and equipment safety, reducing lost-time injury. Workplaces with active health and safety leadership coupled with employee safety trainings have fewer injuries, are often rated “better places to work,” and have more satisfied and productive employees.

ReSolve provides outsourced risk-management resource and support to Insurance and HR Firms, in addition to publicly and privately held businesses.

6 thoughts on “Benefits From Implementing A Risk Management Program

  1. I didn’t realize that the benefits of implementing a risk management program could actually help you with your relationships with your banker and insurance agent. Considering that they both work with risk, if you had a plan to ensure that you were a lower risk you would be able to save some money. I wonder if this is something that anybody can do or if it is mostly done by businesses.

    1. Although this article focus was highlighting the potential savings businesses can take advantage of, it wouldn’t be surprising if this concept was not already being used on various situations. Thanks for reading please follow @resolveok on our instagram and facebook page! Feel free to reach out if we can be of assistance.

  2. Thanks for explaining some reasons to have a risk management program. I didn’t consider that a program like this could address ergonomic and equipment safety. If this is the case, a risk management program is probably ideal if you work in an environment that uses a lot of different and unique equipment.

  3. I loved how you mentioned that you can have strong safety cultures when growing your business when hiring a risk management service. My husband recently opened up his own company a couple of weeks ago, and he was telling me last night about how he wants to keep everyone and everything safe. I’ll make sure to pass this information along to home so that he can look int hiring a risk management company.

    1. Thank you for the comment. Creating a strong safety culture early on can have a significant impact on employee morale while reducing insurance claims and worker’s compensation costs. We wish your husband the best with his new endeavor.

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