This is the first step towards understanding the risks which threaten your business and how effective your risk treatment strategies might be.
An integrated and systematic approach to risk management commences with a risk profiling exercise undertaken by our team. Risk profiling is workshop based, involving CRM as facilitators, together with your key managers and directors. We also look to develop a good understanding of your business objectives, organisational structure and operating environment.
The process is broken down into its distinct phases and the risks are identified according to their source, likelihood of occurring and likely consequences should the risk exposure result in a loss event.
The risk profiling exercise allows us to focus on solutions for risks that have the greatest potential to adversely impact upon your business activities. It also gives you ownership of the risk management process, which may drive significant operational improvements.
The main risk sources which need to be considered will generally come from one of the following categories:
- Property Risks
- Business Interruption Risks
- Liability Risks
- Environmental Risks
- Occupational Health & Safety Risks
The preparation of an integrated Risk Management Manual can help encapsulate the company's risk profile, the company's risk management philosophy, provide disclosure of all major risks and describe the risk treatment strategies adopted by the company. Risk management procedures can be integrated with the company's existing operational procedures to help facilitate ease of implementation.
The Manual can also incorporate risk treatment procedures such as transfer by insurance and overlay the company's operational and emergency procedures. More importantly, the Risk Management Manual can demonstrate good corporate governance for the company which will increase confidence and peace of mind for major stakeholders.
Existing investors, finance institutions and insurers will all look more favourably towards a business which can demonstrate a good understanding of the risks it faces and can demonstrate appropriate risk treatment measures have been put in place.
The following diagram helps to illustrate the risk management process:
