Running a successful business does not come easily. Business survival and continuity require good planning and management for the unexpected. Your business is at risk to the constant pressures of the marketplace and a range of hazards outside your control.
Making decisions that will minimize the adverse effects of accidental business losses on an organization involves five steps: identifying and analyzing exposures to loss, examining feasible alternative risk management techniques to handle exposures, selecting the most appropriate risk management techniques to handle exposures, implementing the chosen techniques, and monitoring the results.
The role of risk management continues to develop and expand, embracing complex, demanding and at times unexpected. Implementing these decisions require performing the four functions of the management process: DISCOVER, DESIGN, IMPLEMENT, and CONTINUITY.
Continuity. Selecting the most appropriate risk management techniques to handle the exposures.
Implement. Identifying and analyzing exposures to loss and examining feasible alternative risk management techniques to handle the exposures.
SLA. A service level agreement (SLA). Contract between us and you – the client, details the nature, quality, and scope of the service to be provided
Discovery. Review and evaluation of the plan.. initial risk management plans will never be perfect. Practice, experience, and actual loss results will necessitate changes in the plan and contribute information to allow possible different decisions to be made in dealing with the risks being faced.
Design. Implementation follows all of the planned methods for mitigating the effect of the risks. Purchase insurance policies for the risks that have been decided to be transferred to an insurer, avoid all risks that can be avoided without sacrificing the entity’s goals, reduce others, and retain the rest.