Risk management and effective business insurance means good solid business practice

July 19, 2017

In everyday operation, all types of organisations face a number of risks irrespective of their size or nature of the business. These risks can vary considerably in terms of the potential severity and the frequency at which they occur. Some businesses may face inherent risks due to the nature of the work they perform or the products they use or sell. Others may potentially pose a level of risk to the public or to employees or customers in the course of their usual activity. Some of these risks can be glaring and direct, others may be covert and obscure. Some risks are internal to the business, others external. A sound risk management plan can go a long way to minimizing and managing certain risks that may threaten the financial integrity of a business and its continued successful operation. There are several steps involved here; the analysis and identification of risks, and the preparation of a risk management plan to generate possible solutions.

According to the Institute of Internal Auditors, (2009), the current thinking in business risk management is underscored by Enterprise Risk Management, a proactive and coordinated framework that enables a business to assess its overall exposure to risk (both threats and opportunities), and provides scope for making well informed decisions about containing that risk. When risk is properly overseen, it can drive growth and opportunity.

A potential risk or source of loss to a business can be extremely broad and wide, and could include anything from equipment failure to the impact of natural disasters. Whatever the form of risk, it can result in convoluted lawsuits and other detrimental issues. No wonder risk managers work tirelessly to find the most effective, adequate and economic ways in which to minimise the impact of these risks to protect the organisation and ensure its uninterrupted continuity. As part of a sound risk management plan, business insurance is considered an absolute necessity. As a priority, business insurance should provide adequate cover for first party claims or losses sustained by the business, as say in the case of fire, flood or other form of damage. An effective insurance policy also needs to provide protection from third party claims. For example, these may include such things as injuries to a customer as a result of workmanship or the products used when undertaking that work.  

How can GSK Insurance Brokers assist me with mitigating risk through business insurance?

If you are looking for the best business insurance, Australia wide, our team of insurance brokers at GSK can offer you a reputable, knowledgeable, and trusted service. As insurance brokers, we understand that one of the key functions of a risk manager is to prioritise risk potential and ascertain the level of insurance cover needed based on that assessment. We understand firsthand, the highs and lows of commercial business operation when it comes to managing risk, and we use this knowledge to your advantage. We rigorously analyse your needs, identify your unique risk profile, and liaise with many insurers to get the best product and most comprehensive insurance protection for the best premium available. If you are seeking business insurance in Perth, we are committed to taking the hard work, confusion and frustration out of finding the most appropriate policy for you. Let us be part of your active risk management plan and provide you with a business insurance quote based on your individualised needs.