3 Tips for Reassessing Corporate Risk Management in 2022
As a business owner, one of the biggest risks that you take is the chance that you might experience risk. Any form of business operation leaves you susceptible to risk regardless of whether you’re in the construction industry or financial services industry.
The truth is, only 12% of businesses reported that they felt prepared for the risk that they experienced throughout 2020 and 2021.
It’s critical that your business can confidently claim that you are prepared for any risk that may come your way this year. As we head into the new year, it is a great time to reassess your business’s risk management plan.
A few tips to consider when reassessing your risk management:
Assess Current & Future Risks
COVID-19 was considered to be a Black Swan event, an event that is wildly unpredictable and severe in its consequences. Black Swan events include natural disasters like Hurricane Katrina, terrorist attacks like 9/11, and financial crashes like the 2008 global financial crisis. While you can’t plan for risk like a Black Swan event, organizations that implement a strong risk management strategy not only survive but thrive through these types of risks.
When assessing your current and future risk, consider the geography, history, and organizational structure of your business, as well as the regulations that your business faces. You can learn more about how to assess these 4 areas of your business here.
Create a Business Continuity Plan
Knowing how to deal with risk when it occurs will save your business money and time in the long run. But, more than half of organizations around the world do not have a continuity plan. A continuity plan is essentially the course of action that your business will take if a catastrophe were to arise. If you need help creating a strong continuity plan, reach out to us here.
Analyze Your Insurance Risk Management Portfolio
Lastly, it is important to assess what your insurance plan covers. A few good questions to ask when analyzing this are – What kind of policies do we currently have in place? What types of events are covered? If you have business interruption insurance, does it exclude any events?
You want to cover all of your bases when it comes to risk management. If you still have questions about risk or want additional help with protecting your business, our team of experts would love to help lead you into safety and security! Reach out to our team here.