Any business owner knows that sound risk management provides a foundation on which to stack all other operation strategies, and it is a great way to reduce accidents and injuries and lower your Workers' Compensation premiums.
If you want help reducing accident costs and managing claims, see Claims Management Services & Workers' Compensation Insurance.
Benefits of a risk management program
- Reduced cost of accidents
- Providing adequate protection
- Economy of operations
- Integration of safety plans
- Reduced risk of criminal liability
- Ability to plan and budget more effectively
- A clearer focus on the big picture
Recommended risk manager duties
- Develop and communicate risk-management policies
- Prepare recommendations and reports
- Conduct risk-identification surveys
- Analyze and measure exposures
- Review leases and contracts
- Coordinate compliance with regulations
- Implement risk-control programs
- Investigate accidents
- Manage claims and litigation
- Arrange risk financing (including insurance); establish retention programs
- Determine and allocate cost of risk
- Monitor results
For risks tied to your technology and data systems, review options such as Computer Facilities Management Insurance.
To protect your overall Workers' Compensation program against large or catastrophic claims, consider resources like Fortify Your Workers' Comp Strategy Against Major Claims.
Our agency would be happy to review your risk management program at your earliest convenience and recommend precautions that can help keep Comp premiums under control; you can review with an insurance agent.
Frequently Asked Questions
What is a risk management program?
A risk management program is a coordinated set of policies and practices designed to identify, evaluate, and control risks that can cause loss or injury to the business and its employees.
How does risk management reduce Workers' Comp premiums?
By preventing accidents, improving safety, and managing claims, a risk management program can lower the frequency and severity of claims, which in turn can reduce premiums over time.
Who should be responsible for risk management in a small business?
Smaller businesses often assign the role to an operations manager or hire a dedicated risk manager; responsibilities can include policy development, accident investigation, and claims coordination.
How often should a risk management program be reviewed?
Review the program at least annually and after any significant incident or operational change to ensure controls remain effective and compliant with regulations.