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Understanding Your Risks

By on August 13, 2008

Insurance is secondary to managing the risks faced in today’s business environment, as reported by ROBERT VILLANO from OAMPS Insurance Brokers.

THE construction material processing industry presents businesses with a unique set of opportunities, but also risks. The sustainability of the industry relies on a proactive approach to risk management, including employee, property and environmental safeguards.

Unidentified and un-managed risks can cost your business in many ways, including lost profits, regulatory compliance issues, liability exposures and even loss of reputation.

Managing the risks associated with your business can benefit your bottom line by:

  • Keeping your staff and clients safer
  • Protecting your business from liabilities
  • Improving the perception of your business among stakeholders; and
  • Assisting you to make informed decisions when it comes to your organisation.

In order to start managing risk you must first identify and assess the risk factors affecting your business operations.

Following is just a small sample of potential risks to consider:

PHYSICAL ENVIRONMENT

  • Design, construction, condition and maintenance of premises
  • Condition, location, operation and protection of plant and equipment
  • Environmental impairments such as the production of dusts, vapours or fumes
  • Storage, treatment, disposal and transportation of wastes

HUMAN ENVIRONMENT

  • Hiring, supervision and training of employees
  • Site visitors: invitees, contractors, trespassers

CONTRACTUAL LIABILITIES

  • Liability assumed through contract
  • Leases and maintenance agreements
  • Hold harmless agreements

After all potential risks are identified then the decision needs to be made regarding which risks are retained by your business and which can be transferred, for example by insuring against them.

This is where the use of an external specialist, such as an insurance broker, can add a valuable dimension to the process.

Given the myriad of risks your business is exposed to every day, ensuring you have the right insurance is critical.

  • Insurance is to your own benefit, providing peace of mind and protection against financial hardship
  • It is to the benefit of your clients, ensuring that should something go wrong they have a means to attain recourse
  • It is a requirement in most contracts Insurance brokers can help you identify the critical priorities, the benefits of insurance and the costs involved.

You and your staff know your business better than anyone else, however insurance brokers can add valuable insight to similar issues faced by other organisations from locally to internationally.

You know you have to have insurance, and you need to be completely confident your business has all the necessary cover.

Ask yourself the following questions:

  • Do I understand my current insurance policies?
  • Am I confident that my insurance is the best value for money?
  • Do I feel confident that my assets are protected?
  • Am I covered for the unique risks my industry faces?
  • Do I know exactly what I can claim and how to go about it?

For over 30 years OAMPS Insurance Brokers have supplied a variety of industries with risk management and leading edge insurance products.

For more information on how OAMPS Insurance Brokers can help you make the right choices for your business, please contact Robert Villano on 03 9412 1361 or email robert.villano@oamps.com.au


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