Risk Management – Operations

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Risk Management – Operations

There are many organizational risks associated with operating any type of business. Many of these operational risks can be mitigated using insurance policies. Others require the firm to create policies, processes and procedures around the various practice areas to increase the odds of favorable results. And the use of both insurance and risk control in tandem is the best way to safeguard your firm from potential loss.

Key Steps in Managing Business Risks

1. Project Management

Projects are usually one-time efforts to produce a specific result. Managing a project means creating the scope, delivery method, budgets, schedule, personnel assignments and implementation of the plan. All these links in the chain generate many opportunities for oversight.

2. Safety Programs & Office Procedures

Running a business, in general, has many pitfalls. The way it is organized and managed, including expectations of employees and office politics. It is important to have clearly defined standardized policies and procedures. This applies internally on expected behavior and conduct, use of firm equipment, sexual harassment policy, use of company vehicles and email to name a few examples. This also applies to outside of the office in case of emergency, renting vehicles and visiting client sites.

3. Business Interruption & Contingency

A sudden event, such as hardware failure, a blackout, natural disaster, fire or an act of terrorism can occur anytime to seriously affect the continuity of your business. It is important to ask yourself: What are your firm’s external demands on a day-to-day basis? How long can your essential business functions be inoperative? What are the costs to respond and the interim loss of revenue?

4. Internet & Technology

This area within operations deals with hardware, software, and privacy concerns within the process of delivering professional services. Changes in project delivery methods and our growing dependence on the internet and networks expose costly cyber liability risks. Privacy liability includes the failure to properly secure computers, the loss of laptops or backup media, and administrative errors. Electronic media liability includes protection against allegations of libel, slander, copyright and trademark infringement. Network operations liability includes coverage for viruses, hacker attacks, and denial of service attacks against third parties.

5. Employees

Employees are a design firm’s primary asset. When key employees leave, they leave holes in the organization that must be filled. Even within a three-person firm, you have hiring, training, retaining, promoting and professional development of staff. Firms with employees must also comply with local, state and national labor laws.

6. Sub-Consultants

One of the best ways for firms to remain flexible is through the use of sub-consultants. Sub- consultants also allow firms to “round out” their service offerings. Needless to say, picking the right consultant is critical. Whether they carry their own insurance or take the same care in delivering their service will reflect on your firm and could potentially make you liable for their actions.

Why Choose Risk Specialty Group for Operational Risk Management?

At Risk Specialty Group, we excel in helping businesses identify and mitigate operational risks through tailored insurance solutions. As an independent insurance agency, we prioritize your best interests by working with over 20 top-rated insurers to provide customized coverage options.

We only partner with A.M. Best “A” rated carriers, ensuring that you receive strong and dependable protection. Whether you want to meet contractual obligations or reduce exposure to operational risks, we design insurance programs that fit your budget and business goals. Our competitive options are dedicated to keeping your operations secure.

Industries We Help

We provide risk management services for:

Types of Business Insurance We Offer

We offer a wide range of business insurance options, including:

Business Insurance Solutions Image

FAQs About Operational Risk Management

What are common examples of operational risks?
Cyberattacks, supply chain failures, employee mistakes, equipment breakdowns, and not following regulations.
How does operational risk management help businesses?
It helps businesses spot risks early, avoid disruptions, and reduce financial losses.
What are operational risk indicators?
Warning signs like system failures, high employee turnover, or security breaches.
Does operational risk management help with legal compliance?
Yes! It ensures businesses follow laws on data protection, safety, and regulations.
How does Risk Specialty Group customize risk management plans?
At Risk Specialty Group, we meticulously analyze your business’s risks and create a comprehensive, tailored plan to reduce threats, ensuring you are well-protected.
Can operational risk management help small businesses?
Absolutely! Small businesses face risks like cyber threats and financial problems. A risk plan keeps them protected.
How does risk management protect against cyber threats?
With strategies like firewalls, encryption, cybersecurity training, and regular security checks.
What is business continuity planning?
It’s a plan that keeps a business running after disasters like cyberattacks or power outages.
How often should a business update its risk plan?
At least once a year or when there are big changes in the business.
What's the difference between operational and financial risk?
  • Operational risk is about daily business activities.
  • Financial risk is about money-related issues like market crashes or bad investments.

What Our Clients Say

One-size-fits-all risk plans don’t work. That’s why we create custom solutions to fit each business. See how we’ve helped companies like yours—check out our customer reviews!

Get in Touch

Are risks threatening your business? We understand the challenges of cyber threats, legal risks, and operational challenges. Contact us today for expert solutions; we’re here to support you!

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