What is something exceptionally good about mid-market companies? They are agile and hold onto their entrepreneurial spirit … in fact they are even taking lessons from the big Fortune 500’s and looking to gain a financial advantage over competitors through various strategies.
A key point was recently made in a Traveler’s survey: “Business who manage risk report higher performances!”
What is evident is that the big boys’ (fortune 100 & 500 companies) have in-house risk manager’s that provide a level of knowledge that can’t be matched internally by other department heads. Thus a best business practice for mid-market companies seeking a financial advantage is to consider integrating similar risk management strategies and policies no matter your size of business.
The survey also points out: large firms continue to outpace their midsize counterparts in relying on third-party consultants for risk mitigation and prevention advice though mid-market companies’ risk mitigation strategies are beginning to equal strategies used by their larger counterparts.
The use of an Independent Outsourced Risk Manager is becoming an industry standard and if you don’t have an in-house or outsourced risk manager, you might not be taking full advantage of your opportunities.
The risk management department serves a vital role as it must understand the various silos within an organization whether it is operational, financial, or human resources. A structured approach helps create a risk-aware culture thus mitigating risk across an entire organization.
The biggest difficulty we see on a continual basis is that the typical company does not know how to utilize the resources available from an insurance carrier or broker or customize needed services according to specific operational units within an organization. Independent Outsourced Risk Manager’s can oversee the daily business operations and truly utilize the valuable services of those offered by the insurer and broker.
While there is No Avoiding Risk, you certainly can be better prepared.