There are many good reasons to bring in an external risk management consultant to help ensure your business’s success. Here’s my top 5.
5. Knowledge transfer. Risk management should be integrated into all your business processes, not resident only in an internal department or committee. An external risk management consultant doesn’t need to protect their turf, but rather will prioritize the transfer of risk management skills and knowledge to those that really need to take ownership of it: your directors, executive, management and staff. Everyone. Their goal should be to make your business risk self-sufficient by the time they are done. Of course, you can always bring them back to help with a new initiative or to facilitate a specific need.
4. Independence. An external consultant doesn’t need to play politics to secure his or her long-term job security with the company. They are motivated by their professional standards and best practices to provide exceptional advice and service to you as a client, rather than currying favour with particular company personalities to advance their career.
3. Asking the hard questions. Unburdened by preconceptions, groupthink or old habits, they aren’t afraid to ask the difficult questions like “That practice seems at odds with your corporate values. How do you reconcile the difference between what you say is important, and what you do?”
2. Affordability. A small or medium size business may not have the capacity to maintain a full-time risk management position or department. Depending on the complexity and diversity of its governance structure and operations, a larger company may not have to. Hiring an external risk management consultant to get you going, or contracting them to provide ongoing services, can make a lot of sense if you don’t need or can’t afford permanent and dedicated risk management staff.
And most importantly:
1. Expertise. Risk managers are credentialed professionals who bring years of education, experience and expertise to focus on your risk management needs. If you assign risk management to an existing staff member to do off the side of their desk, you‘ll get off-the-side-of-the-desk results. Asking your insurance broker can lead to over-reliance on insurance products, excessive coverage and unnecessary cost. Asking your auditor can result in overly-tight financial controls that hamper initiative and innovation. Seeking advice from a professional risk management consultant will net you the right mix of strategies and solutions from across the many risk treatment options.
Want to know more? I’d love to hear from you. If you have questions, comments or want to geek out about risk management, contact me: