Strengthening Your Risk Management Approach
When we talk to new clients about risk management, we make it very clear that risk management is a co-operative effort. While we have years of experience in helping construction businesses to manage their risk, there is only so much we can do without the direct help of the companies themselves. One of the first things we show clients is how they can help us to make their risk management approach more effective.
It Needs to be a Priority for the Entire Executive Team
We have worked with companies where the operations manager has worked closely with us to set up very effective risk management programs, only to have those programs undermined by other members of the executive team. When we meet with clients, we want to be sure that the entire company is on board and buys into the importance of risk management. Without the full support of the entire organization, most risk management programs will fail.
Qualified Personnel are Essential
It does a construction company no good to invest time and money into having a risk management firm protect their business without hiring qualified people to make sure the programs are properly executed. If you skimp on your risk management personnel, then you could find that the insurance protection we have put in place would be rendered void. We outline the kinds of personnel that are ideal for maintaining a risk management program, and we insist that our clients follow our recommendations.
Constantly Evaluate Your Tolerance for Risk
The construction industry, like most industries, changes on a regular basis. Those changes will inevitably affect how your company perceives risk. When you talk to your risk management experts, be sure to keep them updated on your company’s tolerance for risk. If events within the industry allow you to become a bit more tolerant for certain types of risk, then adjustments can be made to your risk management programs that could prevent you from spending a lot of money you don’t need to spend.
Make Safety a Part of Your Corporate Culture
We find that companies that not only buy into risk management at the executive level but also make risk management part of their entire corporate culture are paying less money to protect their operations. From the office personnel to every laborer in the field, it is important that your safety training gets the point across about the importance of risk management and makes every employee conscious of creating safe work environments no matter where the company has jobs.
Understand Why You Have a Risk Management Program
Risk management is not just essential to keeping employees safe, it is also designed to keep the company in business. When a catastrophic event takes place that involves a company employee or piece of equipment, the resulting legal actions and insurance determinations could break your company’s budget. The reason you have risk management is to invest a little bit of money to prevent having to pay out a lot of money for one mistake.
Risk management is one of the most important parts of owning a construction company, yet it is rarely implemented properly. By understanding the importance of risk management and getting every person in the organization to buy into the idea of creating a safe work place, you can constantly lower your insurance premiums and keep your company protected at all times.