Insurance Isn’t a Four-Letter Word
… but risk is in every way. When people ask, “what is risk management”, even professionals often don’t have a solid answer. Risk management is an important part of keeping your business in order when bad situations arise. You can protect yourself proactively, or you can react when a bad situation inevitably comes up. Your business depends on you being proactive before it becomes a crisis situation.
Why Insurance is the Priority
Insurance is protection against catastrophic loss. While some insurance is geared toward protecting you against even small losses, how you structure your insurance coverage is the difference between a little protection and a lot of it. When someone asks what is risk management, a part of this involves the use of insurance as a way to curb potential losses and keep your business functional in the event of a negative situation.
Insurance allows your business to move on in spite of a major problem. While having a substantial cash hoard can take the place of insurance (a process known as self-insuring), this means you have to keep your cash and not use it for anything else. While you have the potential to earn interest on this capital and invest it in outside interests, this essentially takes away both financial resources and intellectual resources you could use to run your business in its intended function. If you spend all your time answering lawsuits and paying for damages, you cannot run your business!
Insurance Risks to Prepare For
When people think about risk management, they need to remember it is the science of understanding both what can go wrong and what is likely to go wrong. Further, risk management involves adjusting for the possibilities that can go wrong. Some of those risks include the loss of property like vehicles, buildings, and equipment. Other types of losses include the potential for liability arising from diverse happenings, such as problems from auto accidents or malfunctioning widgets your company produces.
Your insurance risks can quickly stack up, and you need to be prepared. This preparation takes on many forms, but ultimately they all lead into risk management. If you avoid asking and answering what is risk management, you will find yourself facing risks you never even anticipated.
Why Risk Management is an Important Review
You need a careful review of your risk level in a lot of places within your business. Your risks can be diverse, and you need to analyze them carefully if to stay protected from the many things that can go wrong. Risk management allows you to assess where you may have liability you aren’t considering. This extends primarily into insurance, but it can also extend into risk-causing activities. You could be at risk for all kinds of liability and never even know it.
Insurance Isn’t a Four-Letter Word
Your business is perhaps the most powerful asset you own. But you also have other assets, like your time and your peace of mind. When you practice answering the question of what is risk management, you protect everything that you hold dear. Your assets can quickly become liabilities when your risks get out of control. When you consult with a risk manager, you can reduce the risks by looking over your insurance coverage and reviewing your basic practices. Everything your company does has some risk built in, and you can protect yourself by engaging in calculated risk management practices you can start right now.
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Locally Owned, Casual Approach, Professional Results
Pablo Beach Insurance Group has been proudly serving our local communities since 2005. While we are serious about providing the right insurance coverages to protect what matters most to you, we still embody the Florida lifestyle.