Risk Management – Finance

Q: What are risk financing techniques?

There are two types: Retention : Covering losses with company funds. Transfer : Using insurance or contracts to shift financial risks elsewhere.

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Risk Management – Finance

The area of finance may not seem relevant to risks associated with design firms, but this includes borrowing money to meet payroll, investments the firm has made, employee benefit plans, and aging accounts receivables. It is a constant balancing act between project budgets and overall firm financial performance.

1. Average Revenue Per Employee

While it does have limitations, this ratio provides a gauge to a company’s productivity and financial health. The revenue-per-employee ratio provides a broad indication of the health of an operation. A high revenue-per-employee figure indicates that a company can operate on lower overhead costs, and, therefore, do more with fewer employees, which often translates into healthier profits. Discipline-specific benchmarks should be used when comparing your firm’s ratio.

2. Deductible Options

When a claim occurs and a deductible must be paid, this unexpected expense can cut deep into profitability. Cash flow can vary greatly from month to month and while a design firm may appear to be profitable on paper, cash flow dictates the firm’s ability to meet its financial obligations. Properly matching deductibles to a client’s unique cash flow is a critical part of the risk management process. This even includes deductible types, such as straight self-insured retentions to deductibles that include “first dollar” defense coverage.

3. Managing Accounts Receivables

A key component to positive cash flow resides in how the design firm manages accounts receivables. Design firms should collect money within 60 days of the invoice date. Invoices exceeding 90 days must be pursued for a quick resolution. Particularly in down economies when many firms have cash flow issues and draw out their own payments, there is risk in suing clients for the collection of fees. Staying on top of your firm’s average aging of accounts receivables is one way improve cash flow and therefore overall firm profitability.

4. Alternative Risk Management Financing

Risk financing makes funds available to pay for losses and risk control measures or makes up for cash flow variability. Risk financing can be broken down into 2 segments: Retention and Transfer. “Retention” is the risk financing technique that makes funds available from inside the design firm to pay for losses and manage cash flow variability. “Transfer” is the technique in which the design firm shifts financial consequences of specific losses to a 3rd party. This can be done through insurance, contract (indemnification) language and hedging.

Why Choose Risk Specialty Group for Financial Risk Management?

As an independent insurance agency, Risk Specialty Group is committed to providing unbiased financial risk management solutions tailored to your business. We work for you—not a single carrier—offering access to over 20 top-rated insurers to ensure you get the best coverage for your needs.

We only partner with A.M. Best “A” rated carriers reliable financial protection. Whether you need to meet contractual requirements or reduce financial risk exposure, we customize insurance programs that align with your goals and budget, providing competitive options for you to compare.

Industries We Serve

We create risk management solutions for a variety of industries, including:

No matter your field, we provide customized strategies to reduce financial risks.

Types of Business Insurance We Offer

We offer a wide range of insurance solutions to protect your business, including:

And more! We tailor plans to fit your business needs.

FAQs About Finance & Risk Management

What is finance and risk management?

It’s the process of identifying and handling financial risks, like cash flow problems, unpaid invoices, and unexpected losses, to keep a business stable.

Why is risk management important?

It prevents unexpected financial losses, keeps cash flow steady, and helps businesses stay profitable.

How does the Risk Specialty Group help with risk management?

We offer custom plans for handling cash flow, insurance, and financial risks to keep businesses financially secure.

What are risk financing techniques?

There are two types:

Retention: Covering losses with company funds.
Transfer: Using insurance or contracts to shift financial risks elsewhere.

How can managing accounts receivable improve cash flow?

Businesses should collect payments within 60 days. If invoices go past 90 days, action is needed to avoid cash flow problems.

What is revenue per employee, and why does it matter?

It’s a measure of how efficiently a business operates. Higher revenue per employee means lower costs and better profits.

How does Risk Specialty Group customize plans?

We assess your financial risks, business needs, and industry challenges to create a tailored risk management strategy.

How does risk management help with cash flow?

By choosing the right deductible and insurance plan, businesses can handle unexpected costs without disrupting cash flow.

What industries do you serve?

We work with design firms, engineers, IT professionals, environmental consultants, construction managers, and more.

How do I get started?

What Our Clients Say

We don’t believe in one-size-fits-all solutions. We customize risk management strategies to help businesses meet financial goals and avoid unnecessary risks. Check out our reviews to see how we’ve helped companies like yours!

     EXCELLENT  
  18 reviews

    
 
 
      Posted on Google  
   
   Bobbie Llenz 
 20 December 2023
 
 
  I cannot say enough good things about Risk Specialty Group.  Their team is professional, and they have your best interest in mind.  I highly recommend them.   Our agent is Travis Landers and his team always take care of us every step of the way through the renewal process down to a dreaded claim.  We have been in business 27 years and believe me you want these people on your side.
  
 
     Posted on Google  
   
   JMD Engineering LLC 
 27 November 2023
 
 
  Couldn't be more pleased with the level of service and competitive pricing.  I have a niche business that falls outside the norm of most. Risk Specialty Group took the time to understand my business and provide the perfect solution of coverage for me. I highly recommend them to any small business in need of coverage.
  
 
     Posted on Google  
   
   Jill Bard 
 20 November 2023
 
 
  When I started my business 4 years ago, the team at Risk Specialty Group was recommended to me by a long-time colleague to handle business and professional liability insurance.  I could not be happier!  Travis, Deanna, and the entire team are wonderful to work with.  They consistently provide excellent service and go above and beyond to make sure I have what I need, when I need it.  One example: I purchased a new vehicle for the business and was signing paperwork late on a Friday afternoon not realizing I would need auto insurance before I drove it off of the lot.  Travis and his team took my call at 5pm and made sure I had coverage so I could drive home before 6pm, on a Friday!  Just one example of their excellent service and responsiveness.
  
 
     Posted on Google  
   
   Chris Abell 
 17 November 2023
 
 
  I've been partnering with Risk Specialty Group for last few years, and they consistently deliver exceptional service. The team's responsiveness is truly commendable being both prompt and efficient. The account managers at Risk Specialty Group are clearly experienced, making the process of navigating insurance requirements seamless. I appreciate their attention to detail and the assurance that my business is in capable hands. I highly recommend them to any business in search of a reliable insurance partner.
  
 
     Posted on Google  
   
   Blyss 
 16 November 2023
 
 
  I would highly recommend Risk Specialty Group to anyone looking for reliable and helpful insurance professionals who go above and beyond to ensure customer satisfaction. Travis and Leah have consistently shown exceptional reliability, proving to be significant assets in navigating the complexities of insurance policies. Their unwavering commitment to providing assistance is evident in prompt and thorough responses, along with valuable feedback. Barron Engineering appreciates all of your help and support!
  
 
     Posted on Google  
   
   Nicola Hartman 
 15 November 2023
 
 
  The Risk Specialty Group was recommended to TTL by another client of theirs. We have not been disappointed! Both Travis and Candi have been wonderful to work with - the communication is exceptional and the overall switch from a different company has been seamless. I look forward to working with them for many more years to come.
  
 
     Posted on Google  
   
   Real David N 
 12 October 2021
 
 
  Risk Specialty Group has handled my micro-company's insurance for almost five years.  They have consistently provided prompt, professional, friendly, and effective customer service. I am always sure that I have access to their "A" team and that they are in my corner.  Of all my service providers, they are #1 in that department.  6 stars if I could.
  
 
     Posted on Google  
   
   J Smith 
 31 January 2019
 
 
  Prompt, knowledgeable, and courteous. Enjoyed working with the Risk Specialty Group team.
  
 
     Posted on Google  
   
   Brian Richardson 
 28 January 2019
 
 
  My company, EFR Contracting LLC, uses Risk Specialty Group because of their industry expertise, professionalism, superior customer service and attention to detail. I highly recommend them.
  
 
     Posted on Google  
   
   Elizabeth Schlitzberger 
 17 January 2019
 
 
  Very professional group with great attention to detail. They care about their customers! I highly recommend them!

Contact Risk Specialty Group

Struggling with financial risks? Need better cash flow management? We’re here to help. Contact us today for a risk management strategy tailored to your business needs.

Stay Informed on Finance & Risk Management

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David Nelson

15:10 01 Apr 19

Risk Specialty Group has handled my micro-company's insurance for almost three years. They have consistently provided prompt, professional, friendly, and effective customer service. I am always sure that I have access to their "A" team and that they are in my corner. Of all my service providers, they are #1 in that department. 6 stars if I could.

Todd McMakin

16:00 04 Dec 18

We have been using the Risk Specialty Group for our company insurance for two years and have been very happy with our rates and with the customer service that we have received. They are always quick to respond to questions and requests. Highly recommended!

Su Young

18:52 04 Dec 18

Risk Specialty's owner is great to work with, excellent knowledge of the marketplace and clients' insurance needs. The staff is thorough, experienced and friendly. Great shop to consider for your insurance needs.

Elizabeth Schlitzberger

15:23 17 Jan 19

Very professional group with great attention to detail. They care about their customers! I highly recommend them!

Parallax Consulting Group

01:30 19 Dec 18

I am currently renewing my coverage for year (2) of my business. Everyone at RSG has been extremely helpful, while also being clear and concise with all my options and/or questions through every step of my growth, risk management and company success. I would highly advise and/or recommend RSG to anyone looking to find a firm you can count on...but most importantly, trust!

Risk Management – Finance

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Risk Management – Finance

1. Average Revenue Per Employee

2. Deductible Options

3. Managing Accounts Receivables

4. Alternative Risk Management Financing

Why Choose Risk Specialty Group for Financial Risk Management?

Industries We Serve

Types of Business Insurance We Offer

FAQs About Finance & Risk Management

What is finance and risk management?

Why is risk management important?

How does the Risk Specialty Group help with risk management?

What are risk financing techniques?

How can managing accounts receivable improve cash flow?

What is revenue per employee, and why does it matter?

How does Risk Specialty Group customize plans?

How does risk management help with cash flow?

What industries do you serve?

How do I get started?

What Our Clients Say

Contact Risk Specialty Group

Stay Informed on Finance & Risk Management

Professional Liability Claim Examples in the Engineering World

The Difference Between General and Professional Liability for Engineering Firms

Mistakes Happen: How Professional Liability Protects Engineering Firms from Unforeseen Errors

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