Risk Management Tips That Every Business Should Follow

Posted by MJM Global

Mar 18, 2016 2:21:31 PM



Risks can lurk in any situation. An organization cannot remain immune to risks when different groups of employees, people and external stakeholders are concerned. It is not possible to completely eradicate risk from a business but proper risk management will ensure that the occurrences of business-related risks are at their lowest and there are checkpoints set to control them. Though it may not be as easy as it sounds, having proper strategies in place for managing risk definitely helps a business.

One of the easiest ways of reducing the total cost of risk in your business in the long term, as well as in the short term is to have a systematic focus on employee safety and health at a workplace. Best practices for loss reduction and safety can be implemented in a business so that an organization can bring down the total cost of risk within a set time frame. A business owner not only has to assess different types of risks within his or her workplace but if he works closely with an insurance broker, it is easy to address such risks. That’s because an insurance broker appreciates the total cost related to risk and will help a proprietor to take care of it.

An organization also gets a facelift by implementing specific safety measures for the workers within the office premises. An insurance provider finds it quite appealing to see that its client seems to be serious about the safety of the employees. Thus, such an organization can easily get a better rating from its insurer that would lower the premium rate.

Check out these easy tips for reducing business risks.

Tip #1: Creating an internal safety committee

A business can set up an in-house committee to take care of the safety related issue within the workspace. The committee can meet at set intervals to evaluate the existing safety measures and operational hazards if any. When your business has safety policies in place, it can be a good starting point. However, they can be only effective if someone makes sure that they are actionable items.

Tip #2: Document an organizational safety manual

A safety manual is an important reference point within your organization. The safety regulations of your organization can be recorded in the manual and it can be reviewed with all the employees.

Tip #3: Mandatory medical checkup for new recruits

Such compulsory health checkups will make sure that the employees have the required physical fitness to execute the work that is expected out of them. These physical examinations will also help in avoiding less than satisfactory hires.

Tip #4: A back to work welfare program for injured employees

You should implement a back to work initiative for all those employees who had sustained injuries and are being taken back to join their duties in stages. Such programs help with quick resolution of claims and bring down claim costs significantly.

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Topics: Risk Management, Small Business, Business, Risk