When outcomes deviate from what was expected, risk arises. Accidental losses of income, liability to others, health, life, and property are things that happen in life which bring about risk to all organizations and businesses. Transferring and managing risk across the financial and insurance industries requires thorough knowledge of very specific issues. Understanding and meeting the regulatory and legal requirements is just as crucial.
Risk management is the process of identifying, assessing and controlling threats to a company’s or organization’s earnings and capital. These risks could come from a number of different sources, including but not limited to natural disasters and accidents, strategic management errors, legal liabilities, and financial uncertainty. Data-related risks and IT security threats, along with the risk management techniques to try and solve them, have become one of the top priorities for digital companies.
KCampbell-Law can help with risk management. We share our expertise in many strategic insurance matters such as off-shore captive and domestic facilities, risk purchasing and risk retention groups, claims handling, taxation and premium allocation, worker’s compensation, direct procurement, protection of policyholder collateral, and self-insurance.
We understand the pressures you encounter and leverage our experience gained in representing financially impaired companies. Look to us for solutions in the risk management sector. We are a no-risk choice of partner.
Risk Management Issues More Common Than Ever
Risk management issues across industries are at all-time high. Lawyers, boards, and executive management should increasingly expect risk to be a difficult part of conducting business.
There is a lot at stake with poor risk management. Regulators, employees, customers, stakeholders, and shareholders expect companies to be efficient and proactive when it comes to risk management.
Good risk management does a few key things, including reducing cost and risks, protecting growth strategy, and preserving the company’s reputation, assets, and values.
Even though accidental losses are unplanned and unforeseen, there are processes which can make some of these events a little more predictable. The more predictable the event is, the less risk that will be involved since the event can be mitigated or prevented, or at least expenses can be budgeted for and better estimated. This is how insurance programs work.
Benefits of Risk Management Programs
The key component to an efficient and economical risk program is to have control over the risk management functions and to be assured that what actions are completed are effective, necessary, and desirable to cut down on the cost of operational risk.
A risk management program is evaluated and formulated around the cost of risk.
The main benefit to a risk management program is overall savings to the corporation or organization when assessing all of the factors. Any one particular category might show an increase or decrease in cost.
Risk management deals with all loss exposures, not just the ones that are insurable. Insurance is just a technique to finance some loss exposures, and is a part of the broader idea of managing risk.
If you need a risk management attorney, call KCampbell-Law today for a consultation.