When it comes down to enforcing regulations in the workplace, there’s no way to improve each year if there’s no business risk assessment taking place. It can’t just be any assessment. It has to be both effective and impactful.
If you want to get the most out of your staffing workers’ compensation insurance, having an equipped business risk assessment in place can be crucial for a business. Without risk management, a tense but solvable situation can go south fast.
Being able to know your faults, recognize them as they happen and destabilize them before they implode is the whole reason why any organizations need business risk assessments. Finding mistakes fast means that they can be fixed even faster.
Considering how the insurance industry adapts to newer regulations each year, being able to completely understand the risks staffing agencies take can help prevent from losing any major money.
Here are some tips on how to conduct an effective business risk assessment, via Genre.
Find The Risks That Are Specific to Your Company
Think about what your true definition of risk is, according to your company. If it has a negative ability to impact your overall goals, it needs to be identified immediately and documented. Risks are the things that can really make or break a business, which is why you should always pay attention to them. Once risks are defined, you can fight back with a developed plan and strong positivity.
Create Your Company’s Risk Library
Now that you’ve gathered documentation, it’s time to organize and start a library of it. This helps brings cultural awareness to future generations who take ahold of the business. Remember, they’re going to need staffing insurance too. Some categories that you can break down your library into include:
- Insurance Risk
- Market Risk
- Operational Risk
- Strategic Risk
While you can make more categories if needed, these are some base ones that you can start with to get things done a little easier. Next, you need to identify your risk owners: basically, whoever is responsible for everything.
Identify Controls Used to Mitigate and Reduce Risks
Working with risk owners helps identify current procedures meant to mitigate or reduce risk. Each area should have a specific individual or department heading over it. Basically, each risk is given to a responsible party. So if something goes wrong, it doesn’t have to fall on every single department. It doesn’t even have to be a specific person, only some type of functional responsibility.
Assess Risk Potential and Impact
The goal is to get a trade-off in return through risk. When you assess the financial impact of risk, it can help management figure out backup plans in case things start to fall through. Having that type of management also means that nothing impulsive or brash can happen. What needs to be completely assessed, at minimum, includes:
- Financial Impact or Significance – Think about how detrimental this will be to your staffing agency and if your staffing workers’ compensation insurance is even going to be able to cover it.
- Likelihood – What if something happens after mitigation? There needs to be another plan in place. The evaluation of each risk is either quantitative or on a qualitative basis.
- Revisit The Site Annually – Once you’ve done all of these tasks, you should be able to maintain a consistent business risk assessment that you can use for years to come.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (800) 245-9653 to speak with one of our representatives.