Risk management is a useful tool for any business owner or manager who wants to protect their assets and prevent losses.
To support businesses, Insurance Bureau of Canada has developed various content on business risk management. It is a proven approach to prevent claims and allow the continuation of business activities.
A hard market
In recent years, the commercial insurance market has been hardening in several sectors. Capacity has been reduced, access to insurance and some coverage may be more limited, premiums and deductibles may be higher. The pandemic has not improved the situation and accentuated the difficulties already observed.
Regardless of the business, it can be exposed to different types of risks, such as lawsuits, cyberattacks, or health and safety issues due to deficiencies in business conduct.
Loss experience highlights significant issues for some risks in business insurance such as liability for directors & officers (D&O), cyber risks and business interruption.
Better anticipate and manage risks
In such a context, risk management is an important step for businesses to consider. It provides a clear and structured approach to assessing and managing all potential business risks.
It is important that a commercial insurance representative or risk manager support the business in such an approach. Together, they will be able to determine a plan adapted to the needs and activities of the company.
Generally, a risk management approach includes the following steps:
- Clearly determine what risks the business is exposed to;
- Measure all known risks and prioritize them;
- Develop appropriate prevention measures;
- Establish an action plan and monitor it on an ongoing basis.
While it's not possible to eliminate all potential risks, a risk management plan demonstrates the company's commitment to loss reduction and prevention.
New tools and content in commercial insurance
To support businesses and insurance stakeholders, IBC has developed new web content on the subject:
