July 21, 2022 In Insurance

What to expect during the risk management process

Are you a glass half full type? Or are you constantly thinking about what could go wrong?

While it’s always good to look on the bright side, there are times when it pays to consider the more negative potential outcomes. 

The risk management process is a good example of how thinking the worst can have a protective effect. By considering all the risks to your business in advance, you’ll have a better idea of potential obstacles on the road, and how to overcome them. In insurance terms, it’s always better to sidestep the problem in the first place, than be compensated for it when it happens.

In this blog, we’ll explain what to expect during the risk management process, from risk identification through to risk control – so you and your business are in the best possible position to meet your goals without a hitch. 

Step 1: Identifying the risks

Risk identification is a key stage in the risk management process: if you don’t know what you’re dealing with, how can you protect yourself?

The risk assessment stage involves a full audit of your business and its practices to discover potential hazards or losses. 

Step 2: Analyse the risks

Ok, so those things are possible, but how likely are they to happen, and what harm would you suffer if they did?

At this stage you need to consider the potential financial implications of different risks, as well as the other harm they could do (such as physical or financial harm, or damage to your reputation). 

Step: 3: Evaluation, with qualitative and quantitative risk assessments

By evaluating all the possible risks you have identified, you can build a plan to protect yourself and your business. 

The evaluation is carried out through a series of qualitative and quantitative risk assessments. 

Step 4: Risk control

Risk control is the action you can take to prevent worst-case scenarios and mitigate risk. 

An effective risk control strategy will put safeguards in place to help you avoid risk in the first place. It will also outline the right course of action if something does go wrong, so the adverse effect is mitigated as far as possible. This could include taking out business insurance to help your company recover from financial or other setbacks. 

Step 5: Monitor and review

Everything changes, and risks don’t stay static. It’s important to monitor the risks to your business on a regular basis, especially in highly dynamic areas such as cyber crime. So ideally the risk management process is an ongoing operation, keeping you protected both now and into the future. 

Risk management services from Hallsdale Commercial

As we’ve seen, it’s important to have business insurance. But ideally, you won’t be in a position to need a payout. Nobody wants to experience that worst-case scenario, or to be liable for higher insurance premiums as a result.

With risk management services from Hallsdale Commercial, you’ll get the support you need to minimise risk within your organisation.

Discover how Hallsdale Commercial can help you throughout the risk management process or to get a tailored solution designed to meet your needs, just contact us at info@hallsdalecommercial.co.uk.