Business operations are complicated and thoughtful risk management allows companies to best meet their financial potential. But risk management is not a one-and-done task that companies can check off a to-do list—it’s a constantly evolving process that needs regular evaluation and revision. The right risk management solution should anticipate and respond to risks that can cause financial or administrative disruption to your business.
Risk Management at Lyons Companies
What is Risk Management?
Risk management is the process of identifying possible risks, measuring their impacts, and making important decisions on how to best manage those risks. Risk management helps organizations recognize, quantify, process and address potential exposures and challenges within their operations.
Proper planning and nimble pivots can increase operating efficiencies, reduce expenses, reduce the uncertainty of potential loss, attract and retain a higher quality workforce, and create an environment for profitable growth.
The Importance of Risk Management
The risks facing a business are much broader than what insurance can cover. Attention to a risk management framework allows businesses to respond with a variety of strategies, including preventing, mitigating, transferring, financing and assuming the risks facing their business.
Risk management can also be an effective roadmap for how to calculate exposure to risk as businesses grow.
Types of Risk
There are different types of risk facing businesses and each one can affect a specific aspect of a business. The following are a few main examples.
Hazard Risk – Risks or threats that include a physical loss. Examples are property damage, vehicle damage, and injury or illness to an employee or third party.
Business Risk – Risks impacting the business’ activities and day-to-day operations These include compliance, turnover, employee engagement, training, education, and communication.
Reputation Risk – Risks impacting the value of the organization, like culture, brand, competition, and loss of a key employee.
Key Components of a Risk Management Program
In establishing a risk management framework, company leaders need to think about how the business can reach benchmarks while responding to challenges and controlling costs. The following are key components of a successful risk management program:
Discover. Start with a comprehensive policy audit and risk profile assessment to learn about your business operations, culture and objectives. Identify potential exposures that would cause financial or operative business disruption.
Create options and strategies. Evaluate the most cost effective and comprehensive strategies to manage those risks.
Execute plans and policies. Prioritize and systematically implement customized strategies specific to the needs of the organization.
Track and adjust plan performance. Since risk management is an ongoing process, it’s important to continually monitor and modify programs. Regular communication and analysis will guarantee your business needs are met effectively.
The Benefits of Hiring a Risk Management Advisor
Working in partnership with a risk management advisor provides a business with ongoing and expert support, including detailed advice, products and services that extend beyond the purchase of insurance. Advisors will perform risk assessment procedures and provide recommendations to better protect your business from trouble spots.
Conscientious risk management representatives will take the time to understand a business’ culture and its goals. They will address threats inherent to specific industries and tailor risk management solutions to help businesses control costs.
There is no one-size-fits all way to provide risk management service, and working with a partner like Lyons ensures that businesses receive personalized attention and ongoing support.
Risk Management: The Lyons Advantage
If you’re looking for assistance with risk management solutions, Lyons Companies can steer you in the right direction. We provide large-firm capabilities and independent-firm responsiveness. We’ll create and implement a risk management framework that is designed specifically for your company and its business objectives.
We advocate a collaborative approach. The stability of our private ownership and our commitment to long-term growth allow Lyons to put our clients’ interests before our own. We focus on developing clear policies and procedures, investing in continuous training and education, and conducting regular assessments in order to make ongoing improvements that benefit our clients’ businesses.
Partnering with Lyons Companies puts our experience to work managing your risk. That will allow you to get you back to doing whatever it is that your business does best.