Risk Management - Policyicon

RISK MANAGEMENT

Risk management is a critical aspect of any operations. Be it Manufacturing, Services, Trading, IT etc. It involves identifying, evaluating, and prioritizing potential risks to minimize the impact of unexpected events. Effective risk management can enhance efficiency, ensure safety, and contribute to the business's overall profitability of any business.

THE IMPORTANCE OF A RISK MANAGEMENT PROCESS

Effective risk management enables businesses to identify and prepare for potential risks that could disrupt their operations. By implementing proactive measures, businesses can minimise the impact of unforeseen events and ensure continuity. An effective risk management process will provide decision-makers with valuable insights into potential risks associated with various courses of action. The results can enable informed decision-making by considering risks, rewards, and potential trade-offs.

THE RISK MANAGEMENT PROCESS

Identifying your risk appetite is an important step in the risk management process and will also assist with strategic and operational decision making. It goes to the centre of the business and will impact how you deal with customers, employees, regulators and shareholders. When risk appetite is clearly understood and communicated, it becomes a powerful tool not only for managing risk but improving performance.

Identify your risks
The first step of a risk management process is to investigate & detail risks that might affect your business or objectives. There are a number of risk management tools available such as risk assessments & risk reviews that can assist with identifying and recording risks.

Analyse and measure
The second step of a risk management process is to determine the likelihood and consequence of each risk. By evaluating each risk, it is possible to quantify the potential to impact your business or objectives. A risk register is a valuable risk management tool to record and score the potential risks.

What is unacceptable
The third step of the process is to take decisions concerning which risks are unacceptable compared with your risk appetite. Risks that are acceptable should be monitored and reviewed on a regular basis. Whereas risks that are unacceptable should either be avoided, reduced or transferred.

Mitigate or Transfer
The fourth step is to action risks that cannot be avoided should either be reduced or transferred to an acceptable risk tolerance level for the business. You should consider ways to mitigate the exposure by transferring unacceptable risks from your balance sheet.

Contingency Planning
The fifth step of a risk management process is to consider risks that cannot be managed. If your initial plan to control the risk fails, what is your plan B? For example, in the event of a cyber breach, what are the steps to effectively respond and mitigate the impact after the incident has occurred?

Monitor & Review
The last step of the process is to continually monitor, review and report on risks to your business and objectives. The risk management framework does not finish once the risks have been identified, analysed and controlled. Your business and its objectives will continue to be exposed to new and emerging risks.

HOW DOES POLICY ICON HELP

At POLICY ICON we constantly strive to protect our clients’ assets and mitigate risks. Using different methods and strategies, we help our clients identify and understand the various risks associated with their business using the following methods

Risk Assessments: Activities like Risk Inspections visits are done with the aim to identify hazards and risk factors that have the potential to cause a harm and evaluate the risks.
Risk Audits: Identifies key areas of risk in terms of potential frequency and impact, highlights issues that require attention and allocates responsibility
Risk Mitigation: Help our clients to procure Insurance policies to mitigate the identified risks with adequate coverage at competitive premiums.
Portfolio Management: Help our clients to be on track with all the Insurance renewals and mitigate new and emerging risks if any
Claims Assistance: Help our clients with immediate claims resolutions in order to get the business up and running with minimum stoppages and thus reducing the consequential business losses