Practical RiskMAP Practical RiskMAP is designed to reduce Risk Management processes into an easy to understanding structure that any business owner should and can apply. Making sure your business is protected in the correct way is not an option for anyone who is serious about their long-term success.
Implementing the concepts laid out by the Practical RiskMAP can be a cost-effective method of protecting your business in the manner it is best secured. These processes were not readily accessible to medium and small companies in a cost-effective and practical manner.
After your investigation of your Practical RiskMAP process, you have made a crucial step to managing the risk in your company that, frankly speaking, a lot of other competitors don’t deal with.
You’ll be able to grasp the fundamentals of a process you can employ to manage risks in every aspect of your life. You are able to continue to train yourself about these methods and then implement the steps on your own, or you can rely on external resources to help you get started.
What’s This Going to Cost?
The good thing is that even if you use external risk sources, It’s likely to cost less than what you’re currently paying for your insurance plan alone. In reality, most businesses don’t manage their budgets for insurance efficiently due to the fact that they don’t know that not all risks need to be covered.
Just ignoring the risk and hoping that the unknowable “What ifs” just won’t be a problem isn’t a wise business plan! You’ve spent countless hours building your company. Make sure that you don’t fall for the trap of being blind.
the practical RiskMAP Process
The process of the Practical RiskMAP can be broken into these steps:
1. Risk Identification
It is impossible to manage something that you don’t even know exists. The central part of the Risk Management Process is eliminating secondary ignorance. Secondary ignorance is the inability to recognize that you aren’t aware of something.
You must be aware of the risks your business is facing as many in the best way you are able. It is important to note that this is constantly changing and may never be fully covered. There is no need to become an expert in risk management. However, it is essential to know the resources readily available.
2. Risk Analysis
A Risk Analysis (RA) is the method of estimating the likely magnitude, frequency, and frequency of risks your business is subject to. For instance, you analyze the possibility of an employee being involved in a severe vehicle accident while on make a sales call. The probability of this happening is (hopefully) extremely low. The degree of severity measured in dollars may be high.
There are many additional “human costs” and implications that can result from accidents and exposures. However, to help us, we’ll evaluate the severity of the financial implications to your company (and potentially to you as an individual).
3. Risk Control
Risk Control is the act of determining the most economically efficient way to handle the risks that your company faces. Control is actually an overused term since you can never fully control every risk. This method will allow you to determine the risks you need to avoid or prevent, or reduce.
4. Risk Financing
Risk Financing is the process of determining the most efficient financial vehicle to transfer risk. It can be done through a contract or taking out some type of insurance. In many cases, it is beneficial to hold (self-cover) your risk. Which ones do you keep, and which ones are you transferring?
5. Risk Administration
Risk Administration is the process of managing and implementing the program. It is a continuous procedure that includes internal procedures that you can implement in conjunction with external resources that can assist in limiting loss.
Don’t keep more than you’re able to lose.
Don’t be afraid to risk only a small amount.
Think about the possibilities.
Don’t think of insurance as a replacement for loss-control.