Risk Management

Risk management is the identification, analysis and economic control of those risks that threaten the assets or earning capacity of a business. The form or risk management which we are considering is that which relates purely to insurable assets.

To prepare risk report risk identification is required.
  • Checking the proposal or checklist before submission to insurers
  • Preparing a risk report
  • Arranging a physical inspection or survey to be conducted by insurer
Understanding Insurer surveyor evaluation and estimation of likely frequency and severity of the identified risks. How often are they likely to happen and, if they do happen, what are the likely financial consequence? In doing this the broker will work their way through all the perils that the insurer has been asked to go on cover for.
The final stage in the process is risk control.

Having identified and analyzed those perils that present a higher than 'normal' risk, the surveyor will now indicate what action, if any, is felt necessary in order to either eliminate or reduce the frequency and / or severity of those risks.

Where some action is considered necessary, the report will specify these under two main headings, requirements and / or recommendations.
  • Requirements : these are the improvements or actions that need to be carried out before the insurer will accept the risk, (e.g. installation of an intruder alarm)
  • Recommendations: these are suggested improvements that the insurer would like to see carried out. It is at the proposer's discretion whether to implement these recommended improvements, e.g. improvements in the waste management system.

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