How Can An Internal Risk Manager Help Your Office?

Risk management is more than just what a company does to limit its risks when it comes to lawsuits.It is also managing risks that may have a positive outcome like investing and managing those things that may cause a business to fail like natural or manmade disasters.By having a plan in place, a company is able to take advantage of those risks that may lead to better days and mitigate those risks that may cause problems.Many businesses will farm their risk management out to a company that specializes in risk management.That makes sense when a company does not have the resources or expertise to provide its own risk management.
Because of the multitude of things that are part of risk management, a company that is outsourced to do the job may not be providing all of the services that would help a business become more profitable and take the right kind of risks.Often times, the risk management company provides a list of rules that the business can check off when they fire someone or when they run into a legal question.There may be more support in the way of being able to contact the risk management company to ask questions, but again those questions are usually related to mitigating the dangers that a risk may impose.

A better solution is to have an internal risk manager on staff.The internal risk manager has the opportunity to really delve into what it is that your business does.With every day that he or she spends on site, he or she can better refine what would otherwise be a cookie cutter plan.While it would be nice for one size to fit all, the reality of business is that an approach like that is usually not very successful.
Not only do businesses differ, but management practices differ as well.Some management teams are more risk averse than others, and every management team prioritizes the top risks a little bit differently.An intern risk manager can learn the style of the management team and its priorities and start making suggestions that make sense for that individual business.
A company that has a highly risk averse management team may prioritize disaster preparation over a risky investment plan.Whereas a management team that is not risk averse may prioritize a risky investment strategy over preparing for an emergency that may or may not happen.However, most proposals are not either/or propositions.Instead, many things can be done at the same time to invest and prepare; the risk manager can prioritize the budget so that both things get done in a timely fashion.
A risk manager should be more familiar with the laws than say an HR manager who might understand hiring and firing laws but not the implications of those laws as it pertains to trials and workers' compensation.Having the expertise available to consult on sticky legal questions makes a company leaner and better able to deal with situations quickly rather than have them drawn out and become a different sort of liability.
Putting the right risk manager in house can help an office react more quickly to those risks that it may not have even known existed before.Whether it is taking advantage of a positive risk or mitigating a negative one, an internal risk manager can help any business looking to b able to move faster, and in this day and age, it is important for businesses to be able to move more quickly than its competition in order to survive.Otherwise, the company's days may be numbered.