6 “Rules of Thumb” for Small Business Risk Management

Want to keep your small business safe from risk? These 6 “Rules of Thumb” will help you practice proper small business risk management every day. Subscribe here: http://murraygrp.com/riskybusiness/

My name is Ryan Hanley, I’m director of marketing and licensed agent here at the murray group and it’s both my role here, as well as my passion to help business owners like you receive the maximum benefit from your insurance.

However, today’s video is actually the 4th in a series of five videos on risk management… so no insurance talk, today we’re talking about preventing and/or reducing the impact of accidents if they do happen.

Risk Management has a few basic tenets, six actually that act as “Rules of Thumb” for keeping your business safe. Though each of these is from a 30,000 foot it’s important to have them in the back of your mind as you make both daily and directional decisions in your business.

#1 Don’t retain more than you can afford to lose – Understand what your business’s risk tolerance is… What kind and magnitude of loss can you sustain and maintain.

#2 Don’t risk a lot to get a little – Manage the trade-offs of every action you take, things like taking on a new vendor, adding new staff, expanding your location… Risk is important to business but make sure the Juice is Worth the Squeeze

#3 Consider the likelihood of events and their potential impact – consider the realistic fequency and severity of accidents happening and what needs to be done to prevent them or reduce their impact.

#4 There is NO such thing as an uninsured loss – If you decide to NOT purchase insurance coverage for a particular exposure, you’re actually just self-insuring that loss. Not buying insurance doesn’t mean that thing isn’t going to happen, it just means you pay for the damage.

#5 Don’t treat insurance as a substitute for risk control – Insurance provides reimbursement after an accident… but preventing that accident in the first place is SOOO much better.

#6 Consciously use risk control or risk financing on every potential risk – a good practice is to sit down and assign a risk control technique and risk financing option to each potential risk that could impact your business.

Keep these six tenets of risk management in your back pocket and you’ll be doing your business a huge favor.

At The Murray Group, we see our job as not only providing insurance products to help you recover after a loss, but also to provide risk management guidance to reduce the chance of an accident ever happening.

If you think our agency would make a good partner for your business and you’d like to begin the process of receiving a proposal for your business insurance program, please give us a call at 518-456-6688 or email us at insurance@murraygrp.com

If you’d like to learn a little bit more about The Murray Group first, please click this link here or the link below this video to subscribe to our Risky Business Newsletter.

We’ll help you find, peace of mind.