Get a read on risk.

The risk industry and the professionals within it have changed drastically over the last few decades.

Once, risk professionals simply purchased insurance to transfer losses onto another company. Now, they are expected to monitor the risk environment, identify and predict risks, and implement proactive strategies to prevent issues from occurring or minimize their impact when they do. Top-leadership positions based on risk management, such as Chief Risk Officer (CRO), are becoming increasingly common.

With this in mind, what skills and competencies are now necessary for a risk professional to be successful? Certainly a general knowledge of the insurance industry and financial risk will no longer suffice. In addition to an understanding of many topics and environmental factors, there are necessary personality traits, such as influential, flexible, and collaborative.

It's a normal human tendency to stay optimistic and believe that you are immune from disaster. We say, "that'll happen to other people, I'll hope for the best and focus on my day-to-day activities."

Organizations use risk management systems to track claims and risk information, analyze and report on data, and monitor and control the overall cost of risk management. You’ve recognized the need for a risk management system in your organization. Great! But how do you ensure that you choose the right system? There are several vendors to choose from, each slightly different. You also need to choose a system that’s right for your organization: it should be a tool to help you manage risk. It must streamline your process, not add another task.

There are three steps that will allow you to feel confident in the risk management system you choose for your organization. First, consider your internal environment. Then, use this to identify your primary and secondary system criteria. Finally, use this knowledge to research and select the vendor that is best suited to your organization.

Culture, in general, is “the attitudes and behaviour characteristic of a particular social group”. In an organization, it is comprised of employees’ beliefs, values, and mindsets and how these influence their behaviour. It is how they choose to go about their jobs on a daily basis and why they act in this way.

One of the most crucial aspects of an organization is its safety culture. This is particularly true in manual work environments where incidents and injuries can be common. Safety culture involves the general mindset of employees about risks and how to prevent them through reporting unsafe actions, taking proper precautions, and so on.

Organizations are constantly searching for opportunities to reduce insurance costs. Companies need to view their role in the insurer/insured relationship differently. The insurance company isn’t selling you insurance; you are selling them your risk. Don't let them assume what you do and what your risks are.

By providing detailed risk management plans, including your organization's ability to produce and implement trend analysis reporting, your organization is promoting its proactive and risk-conscious environment. When history is unknown, or the internal approach is more reactive than proactive, insurers will typically err on the side of caution. This frequently translates into higher premiums and more restrictive coverages and limits.

Follow these tips below to get the best insurance for your organization: