Risk & Business Magazine General Insurance Services Magazine | Page 8

RISK ASSESSMENT
Is Your Business Ready
for Risk Resource ®
I
f your company’s insurance renewal
process does not involve a true analysis
of your changing needs, it might be
a great candidate for a formal risk
assessment—a four-step process
that helps companies better identify and
implement effective risk management
strategies. While it may be easy and familiar
to simply retain the coverages you have in
place when it’s time for renewal, it makes
more sense to assess what’s changed over the
past year and how these changes may impact
your risk profile and your insurance needs.
The process is especially suited to fast-
growing small- and mid-sized businesses,
where resources are often stretched thin
and company executives are typically forced
to wear a number of different hats. These
individuals may have tremendous vision for
growing their business, along with excellent
command of their company’s day-to-day
operational needs. Yet they may simply not
have the time to focus on their business’s
areas of risk that need attention. They would
benefit greatly from a pair of “fresh eyes.”
There is often a real void that exists in these
companies because they are usually too small
to retain an internal risk manager that is
always on alert for threats to the business.
8
Their best bet is to contract externally
for these resources so they get the same
risk protection as the large Fortune 500
companies without having to carry a full-
time salary. The key to success, however, is to
engage a risk consultant that really takes the
time to get to know your company by looking
at specific areas of potential risk: hazards,
compliance and legal, internal controls,
cultural risks, and external controls.
General Insurance Services has a risk
assessment program called Risk Resource®
that comprises these four steps:
1) Identification of exposures
2) Development of strategies to handle risk
3) Implementation of programs
4) Ongoing monitoring and adjustment
In getting to know each client, it’s important
not only to look at all aspects of a business’s
physical plant and policies but also to learn
as much as possible about the business,
including answers to fundamental questions
about where the company is headed, its goals
and aspirations, and what its executives
believe threatens the company’s sustainable
BY: DAVID GATELY
COMMERCIAL ACCOUNT EXECUTIVE,
GENERAL INSURANCE SERVICES
growth. At General Insurance Services, we
also examine our clients’ risk profiles from
the insurer’s point of view and strategize
about how to strengthen their appeal,
perhaps by implementing new safety
measures, better communicating company
policies, and improved handling of sensitive
employee issues.
The issues uncovered during a risk
assessment often take time to improve,
but having a plan of action demonstrates
to insurance carriers that the company is
serious about issues like workplace safety,
employee well-being, and facility protection.
The result for clients can be a nice adjustment
on their insurance rates, which can often be a
big boost to their bottom line. +
David Gatley joined General Insurance Services
as a Commercial Account Executive in April 2012.
Prior to entering the insurance field, he spent
15 years in the business community managing
and running restaurants in Ohio, Kentucky, and
Indiana for Bob Evans Farms. David currently
serves on the Board of Directors for the Boys and
Girls Club of Michigan City. In his free time, he
enjoys exercising, reading, the beach, time with
his children, and riding his motorcycle.