Risk managers know the purpose of their role and the value they bring to the organization; however, other employees may not always understand what the risk manager does or the widespread benefits of risk management strategy and actions.
In many cases, employees may not even be able to describe risk management which creates a company-wide problem. It’s harder for risk managers to get cooperation to implement risk management procedures when the concept isn’t common knowledge. To illustrate the importance of risk management, here are 5 reasons all employees should care about risk management.
Risk Management Makes Jobs Safer
Health and safety are at the top of a risk manager’s task list. They actively seek out problem areas in the organization and find ways to fix them. They can use data analysis to identify loss and injury trends and put strategies into place to prevent them from recurring. This obviously benefits employees in physical work environments, but it can also help office employees. A safer workplace is better for everyone!
Risk Management Creates Financial Benefits
The risk department should not be seen as a cost to a business. In fact, it directly creates value. By using trend analysis, risk managers can spot high-frequency events and work to minimize repetitive losses. Incidents will be less likely to occur and those that do will have less of an impact, potentially saving a business thousands of dollars, if not more. Risk managers are also the experts when it comes to securing the right levels of insurance to maximize the financial impact of the risk management program.
Risk Management Improves Communication
Communication is essential for organizational and employee well-being. It promotes understanding of internal and external issues and helps everyone work together effectively. While most employees understand this, it can be difficult to put into practice if all parties don’t understand the impact. Risk managers can help with this by aiding horizontal and vertical communication throughout the business. These additional methods of communication benefit employees.
Risk Management Benefits Company Culture
A strong culture is better for everyone: frontline employees, risk managers, executives, and decision-makers. It creates a common mindset of prevention and safety that influences the actions of employees. It sets expectations of performance and sends a positive image to the public.
Everyone Has to Manage Risk
Every organization faces risks. As most business people understand, sometimes risk is inevitable in order to achieve success. In spite of this, sometimes the department is viewed negatively, as they often have to be the “no” department. The purpose of risk managers, however, is not to eliminate all risks. It is to minimize the potential negative consequences of risk. By working with risk managers, employees can make smart risk decisions to improve the chance of reward.
Ready to buff up your risk management efforts? Call Assured Protection today!
Assured Protection is staffed with security experts and logistics managers that can set-up and execute client training and consultation for virtually any size business. We provide client training that can help in reducing potential risks on-site. If you’d like to discuss your options, give us a call at (443) 281-8391.