Risk Updates
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Earlier this year I was able to take a ski trip to an amazing resort in the Pacific Northwest; Stevens Pass, WA. Stevens Pass is about a 90 minute drive East of Seattle WA. Those of you who have not skied at Stevens Pass need to put it on your list of ski destinations. It is a good mountain and great resort that has an intended rustic, throw-back, log cabin, clock tower feel; of 50 years ago. As I was driving up to the resort on the two lane road and passing through the many small rural mountain towns East of Seattle; part me felt like I was in a time warp back to the 60’s. There were numerous people walking and riding their bikes many of them dressed in tie dyed shirts and ponytails. There were multiple signs bartering for services, looking for Bigfoot and selling marijuana. Along with this, I witnessed several individuals holding signs, with their thumbs out…hitchhiking to their desired locations.
I recall reading the signs of these hitchhikers (no, I did not stop and pick any of them up) which stated their chosen destinations. I saw; Seattle, Portland and Vancouver but one in particular caught my eye; written in bold black letters on a well-worn piece of cardboard the sign simply read; “Anywhere”.
I’ve thought about that sign occasionally and the individual I witnessed holding it that day. It has occurred to me that many organizations have this same approach to Managing their Risks. With very little thought or strategic planning on how to identify the Risks which can most impact their operations and financial viability, these organizations are left to be taken “Anywhere” or “Wherever” the immediate crisis, claim or issue may take them.
One of the questions I often ask many business owners and executives I meet with is: “As an organization, what are your top 4 or 5 biggest exposures to loss?” It is a rare individual who has identified these issues, understands their potential impact to their organization and can articulate the steps taken to mitigate their exposure. Those Business Leaders who struggle to answer this question may just as well be standing by the side of the road holding a sign that reads “Anywhere”.
For some organizations; their entire strategic approach to risk revolves around getting annual bids on their insurance to see how much money they can save on their premiums.
I find it interesting however, that if you were to study the answers to a recent survey of Business Owners and Senior Executives which asked the question; “What are your Top 10 Business Risk for 2018?”; only one item in the Top 10 is something an organization can readily purchase insurance coverage for. (Article Attached Below)
If your risk management approach is limited to bids to reduce your annual premiums…you might as well have your thumb in the air and hold a sign that reads “Anywhere”. If however…you’re tired of being taken for a ride to a destination not of your choosing and would like a more strategic approach to your Risk Management; please give me a call.
Click on the link below for Articles in this Edition
- Top 10 Risks of 2018
- Captive Overview
- Loud Workplaces Associated with Heart Disease
- Cyber Business Interruption
- Product Recall Alert
https://www.iwpubs.com/Subscriber/sd.asp?l=59950039&p=9&_s=767A786D