Risk management is the identification, assessment and prioritization of risks in order to attenuate, monitor and control the probability and impact of losses. Effective risk management activities create value and needs to be an integral a part of the decision-making process.
Risk management affects financial results in the following ways:
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- It provides opportunities to acquire higher prices for insurance premiums
- Saves on out-of-pocket costs reminiscent of deductibles
- Provides a protected and stable environment for employees, volunteers and clients
- It helps you understand and prepare for risks before losses occur
Strategies to handle identified risks include:
- Risk avoidance, which incorporates eliminating risk activities and avoiding creating risk activities.
- Mitigation or prevention to scale back the likelihood of losses occurring or to scale back the impact of losses if they occur. This is done by managing responsibility by structuring activities and programs in a way that reduces or mitigates institutional risk.
- Transfer of risk, which suggests transferring the risk or financial consequences of loss to a different party. Transfer of risk will be completed through insurance policies, security agreements, or releases and waivers.
- Risk retention accepts that certain risks are inherent in operational activities. Risk retention strategies include self-insurance, deductibles, and/or selecting not to buy an insurance policy for a specific exposure.
At Kapnick, we have a number of resources to allow you to manage your risk. These include:
- Experienced experts and groups of practitioners who understand your online business, join industry associations, meet those responsible for ensuring safety and loss control – and learn from their experiences first-hand.
- Kapnick Risk Solutionswith on-site loss control assessments, comprehensive claims reviews, and program design and implementation.
- Kapnick Risk Services Centera unique program that gives online risk management tools and materials your organization needs to assist reduce injuries and improve profitability.
- Rice ch, a comprehensive risk assessment that solves customer problems when purchasing insurance and managing and controlling risk. By revealing your insurance rating, Kapnick is in a position to develop a personalized motion plan to scale back risk as much as possible and ensure the success of your online business.