Every organization needs to be prepared for potential risks to ensure its resilience. However, balancing risks and rewards is a challenging task for businesses. Our Executive Vice President of Delivery and Analytics and General Counsel, Michael Winschel, explains to achieve success, organizations need to develop an effective risk management framework that allows them to anticipate and mitigate risks.
Four Key Elements of a Best-in-Class Risk Management Framework
Making Informed Decisions
Risk International offers a unique, tech-enabled risk management framework to help organizations increase risk awareness and make data-driven decisions. By considering risks, rewards, and potential trade-offs, organizations can make informed decisions that lead to better business outcomes. This framework consists of four key elements.
- Risk Identification
The first step in the Risk Management Framework is identifying potential risks. Risk International uses various methods to identify risks, including risk surveys, insurance renewal data gathering, and client interviews.
- Risk Assessment
After identifying risks, the focus shifts to risk assessment. This involves evaluating factors such as frequency, severity, variation, and potential impacts. Understanding these nuances empowers clients to make informed decisions on effectively managing each risk.
- Risk Treatment
Treatment is a pivotal phase in deploying cost-effective strategies to minimize the adverse effects of risk and any associated losses. Risk International provides various options tailored to each client’s unique risk profile, from elimination and loss control to contractual risk transfer and retention.
- Monitoring, Reporting, and Refinement
The final element focuses on continuous improvement. Embracing a cyclical monitoring, reporting, and refinement process allows for adapting strategies, addressing emerging risks, and refining the approach to ensure clients are well-prepared for dynamic challenges.
Enhancing Risk Management
Risk International’s tech-enabled risk management framework empowers organizations to make informed decisions, minimize risks, and achieve better business outcomes. Our team’s extensive experience in commercial insurance and risk consulting gives us an in-depth understanding of the industry, providing clarity and efficiency in navigating the complexities of effective risk management. Complete the form below to speak with one of our industry experts and learn how we can help your organization.