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.
When risk management was in its infancy, it was firmly rooted in the financial sector. Investment banks advised their clients on financial and market risks, and referred them to insurance brokers to cover the rest.
That was risk management in a nutshell. Continue reading “From banking to business”