Now before insurance people get too excited, let me say that insurance is usually a very important part of an overall strategy of risk management. Insurance, however, is only one of a suite of treatment options available to organizations wanting to manage the uncertainty associated with achieving their goals and objectives. You might say insurance is part of risk management, but risk management is a whole lot more than insurance. Continue reading “Risk management is NOT insurance”
If your business contracts for goods or services, you have risks. It’s good risk management to ensure your contracts include clauses requiring your suppliers and service providers carry insurance that will extend protection to you in the case their actions, or lack thereof, cause you a loss.
I’ve been called to facilitate risk assessments for organizations varying from project teams to corporate boards of directors. Surprisingly, I still occasionally find the risk assessment to be the first time the key stakeholders have come together to discuss their goals and objectives in a critical way and to form a common understanding for how comfortable they are with uncertainty; what is their risk tolerance?