Why Should You Manage Risk?

A good risk management plan means cheaper insurance premiums and a better deal for your business.

The reason for insurance is that by taking out insurance it transfers your risk of loss to the insurer, in exchange for a regular premium.

What Affects your Premium?
- Claims History
- Risk Management Practices

If you identify potential hazards in your business, and put a plan of action in place to protect your business against those hazards, you will therefore minimize your risk.

When this is put in place you are less likely to suffer a serious loss in your business, and this allows your insurer to offer you a better deal.

Business Risks usually fall under 3 headings:

1. Health and Safety

Health and safety is ever changing and evolving. The practice of this guarantees that employees have;
- A safe place to work
- Safe work practices
- A safe operating plant and equipment
- Safe access to and from the workplace.

Top 5 Health and Safety Risks

1. Slips, Trips and fall
2. Manual handling injuries
3. Falls from a height
4. Plants and equipment injuries
5. Falling objects

2. Property and Business Interruption

Always remember that your buildings, equipment and stock have to be covered just as much as your workforce has to be.

Control your Property Risk

Be conscious of the risk factors in;
- The workplace
- Your work processes
- Location of your property
- Your buildings’ security and how appealing it is to intruders

Business Interruption

This cover provides for;
- Loss of profit
- increased working costs
- Or if you lose your property due to a massive fire

Top 5 Property and Business Interruption Risks

1. Fire and Smoke losses
2. Security and theft
3. Flooding and storm damage
4. Arson or electrical damage
5. Business failure due to large loss

3. Road Risks

Where are your risks?
- An accident involving your driver delaying a delivery, he could have to take time off work also.
- Goods of equipment could be destroyed in an accident
- If your driver was transporting dangerous substances and crashed it could cause huge environmentally damaging effects
- Poor driving could also put your company at risk, if your company logo is displayed on the vehicle.

Top 5 Road Risks

1. Poor driving training
2. Poor and unprofessional maintenance on vehicles
3. Unsafe use of mobile phones
4. Speed and inexperienced drivers
5. Unrealistic delivering times

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