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Risk Management

Reducing Risk: What’s Your Cost of Risk Management?

By July 12, 2016 March 11th, 2019 No Comments

Conservation United takes a total cost of risk approach by tailoring your risk management program to look to the end game – your price. To reach that goal, we help you:
• Analyze your exposures
• Implement control measures to those exposures
• Determine risk transfer or financing options
• Manage current and future exposures
Identifying Exposures
As part of our risk management interview process, we look to confirm that your risk management approach supports your overall business objectives. As a business owner, what keeps you up at night? If that concern happened, how would your income or cash flow be affected if there were unforeseen depletions of capital or a shutdown in production or supply? Discussing the qualitative aspects of your business provides the important details needed to solidify the game plan to your end game—price. Exposures are both qualitative and quantitative. Analyses into both offer the foundation for developing forward-thinking approaches to those exposures.

What is your viewpoint on risk? Is your company risk-averse? Is it in a financial position to take on more risk versus transferring that risk to another party or contractually to a carrier? To help determine your risk aversion, it helps to assess your company history. For example, if you are a start-up company, cash flow and funds are typically tight, so you are more likely to be adverse to risk to protect the financial viability of your start-up organization. Conversely, if your company has a 20-plus year history, there are also risks, including becoming obsolete, stagnant or too conservative with your business plan.

Additionally, we consider your industry, market position and competition in positioning your risk management solution to the changing needs of your business.
Quantitative analysis supports the qualitative interview. We look at the “hard numbers” and prior losses to identify trends in your performance.

We work with you to develop a strategic action plan, assist in the execution of the designed risk management program and are committed to the monitoring and support of these initiatives. If you are interested in reviewing your risk management strategies, contact us today at (844) 559-8336 to speak with one of our insurance experts.