Running a business comes with many types of risks. Certain risks can cause serious damage to a business and can put a company behind in operations and growth. But some risks can be so devastating it can actually destroy a company. Despite the type of risks or even the size of the company, risk management has to be addressed.
First, it is important to identify what the role of a risk manager position involves. A person or risk management group oversees the company's comprehensive insurance and risk management program, assessing and identifying risks that could impede the safety, security, reputation and financial success of the company. Some of the specific duties include conducting risk assessments; establishing policies and procedures to identify and address risks; and making recommendations of risk management solutions, such as insurance coverage, safety and security policies.
So what are the options for companies to handle risk management?
In-House
In many cases, companies have an employee who wears many hats, usually a person who is in the finance area or, in the case of a larger business, it may be part of a personnel director's job. If it is a smaller business, the owner or president is the one usually handling risks areas. For big businesses, an experienced risk manager is employed full time.
Consultants
For smaller or mid-size companies, there are individual consultants available who will offer their services as an independent contractor for a monthly or annual fee. However, if the potential savings a risk manager consultant offers your company exceeds his fees, then it might be worth while to hire a full time risk manager.
Consulting Firms
Consulting firms are similar to individual consultants, however, they usually offer more resources, support personnel and varied industry experience than an individual consultant. Also, their fees are usually higher.
J.P. Perry Insurance
While J.P. Perry is not a risk management consultant, as an Independent Insurance Agency, our commercial lines division can provide risk management guidance and help shop insurance companies for coverage that will protect your company. We do this all of the time for small businesses, plus we help risk managers with larger businesses. So if you need a source for protecting your business, call a J.P. Perry commercial lines agent.