No matter the size of your business, you can benefit from using the basic techniques that major corporations employ to control their risks. Consider these examples:
Risk management practices
- Plan and plan again. Develop a comprehensive business continuity plan based on a thorough knowledge of your operations. Establish procedures to drive decision-making in an emergency and help ensure information reaches the right people. Test the plan at regular intervals to train staff and identify roles that may not work under stress.
- Review supply chain risks. In efforts to cut costs, many companies have reduced the number of suppliers, changing their risk profile. Identify single points of failure and consider contingency suppliers or inventory strategies.
- Define your “risk appetite.” Identify the risks your business faces and decide which ones you’re willing to assume and which you prefer to insure. Use this process to benchmark your practices against peers.
- Encourage return-to-work efforts. Return-to-work or modified-duty programs can reduce workers' compensation costs and help injured employees stay productive while they recover.
- Work with professional organizations. Groups such as the Risk and Insurance Management Society can provide continuing education, peer networking, and best practices for risk professionals.
As risk management professionals, we can provide you with a comprehensive review of your program and recommend revisions — free of charge. We’re always here to help.
For information on insurance structures and financing options that support these techniques, see Commercial Insurance and Risk Financing.
To review broader program design and governance guidance, see Corporate Risk Management.
If you’d like personalized assistance, review with an insurance agent to discuss how these practices apply to your business.
Frequently Asked Questions
How often should I test my business continuity plan?
Test plans at regular intervals—commonly annually or after major operational changes—to ensure procedures and contacts are up to date and staff know their roles.
What is a reasonable approach to supply chain risk?
Map critical suppliers, identify single points of failure, and develop contingency options such as alternate suppliers or safety stock for key inputs.
How does defining risk appetite help my business?
Clearly stating which risks you will retain versus transfer helps prioritize mitigation efforts and informs insurance purchasing decisions.
Are return-to-work programs mandatory?
Requirements vary by jurisdiction, but return-to-work programs are widely recommended because they can lower claims costs and support employee recovery.