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AUB Group executive has stressed the importance of proactive risk assessment and management for better business performance.
“Our experience over many years shows businesses achieve tangible benefit from proactively identifying and managing risk,” said Sunil Vohra, divisional chief executive for risk services at AUB Group. “While many risks can be addressed with insurance cover, businesses can often take simple prevention activities to stop incidents occurring, particularly around people-related risks.”
His statement was supported by a recent PWC risk assurance study, which said that “businesses that take a holistic approach to risk management are likely to be more productive and profitable due to less downtime and fewer liabilities.”
Setting a mitigation plan in action can start from assessing what risks organisations face. Each business has a different risk profile, which depends on a number of factors, including the type of work, workplace design, the level of safety training provided, and potential repercussions of an incident.
“In a business operating heavy machinery for example, a workplace injury could be acute and serious,” Vohra said. “In an office environment, workplace injuries are more likely to be the result of repetitive stress. The evolution of the working environment also sees new risks such as employees working remotely or in blended teams from multiple employers. So it’s important to understand the type of risks for each business and set mitigation plans accordingly.”
Business leaders can tap the expertise of risk advisors and specialist claims services to rank the risks based on the likelihood of occurrence and the severity of the possible consequences. The ranking of risks will enable them to prioritise action to mitigate versus those items that can be addressed as time and resources permit, AUB Group said in a statement.
A comprehensive plan will also focus on claims processes – including which specialist rehabilitation and return-to-work providers to use – especially since accidents occur even in the safest workplaces. Said services are often covered under the normal workers' compensation or general insurance policies all employers have in place.
Vohra said that SMEs can now adopt effective risk management techniques thanks to the increasingly accessible expertise of risk advisors and specialist claims services, which were previously only available to large corporates.
“Seeking the role of specialist risk advisors to provide proactive risk assessment and management has proven benefits and can provide SME business owners with a competitive edge in how their organisations operate,” he said. “By focusing on risk and finding ways to better manage it, businesses can lower the costs and disruption associated with incidents, attract and retain the best talent and can focus on improving business performance.”
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