What to Look For In An Outsourced Risk Management Team
The risk management process is the deliberate and methodical identification, measurement and prioritization of risks resulting from unplanned events. This process is paired with the application of resources to minimize, monitor and control the probability and/or impact of events that can range from the sudden death of a key person to the loss of a warehouse and all of its contents to fire. The risk management team must assure this type of uncertainty does not undermine or threaten the company’s business goals.
Risk managers must possess the vision, skills, education, knowledge, temperament and tools to manage risk as described above to be effective and ultimately successful. They must also earn the trust to become a key component of the management team. Otherwise, its risk management will be ineffective as its guidance and programs go unheeded. If the risk management team originates from a risk management outsourcing partner, such as an insurance broker like KMRD Partners, both parties must be assured in advance of their ability to work together in partnership.
The risk management team will be responsible for applying your business’ risk management plan over both the short and long term. Following are 5 key responsibilities of a risk management team:
- Identify Risks
- Measure and Prioritize Risks: After identifying risks, the risk management team must evaluate the probability of each risk’s occurrence and estimate possible (negative or positive) effects and costs to the business and its activities.
- Implement a Risk Management Strategy: The risk management team decides how to manage prioritized risks by using risk management strategies, after which it develops a plan outlining steps to be taken to manage major risks and allow the company to fulfill its business mission with minimal probability of failure.
- Execute the Risk Management Plan: The risk management team must formally adopt and implement a risk management plan template. The plan’s implementation starts by distributing and explaining the plan to all stakeholders affected by it.
- Review and Revise the Risk Management Plan: The risk management team reviews project activities, reviews status and progress of identified risks, estimates existing threats and registers new ones during the implementation of the risk management plan.
Need To Perform a Risk Management Assessment? KMRD Can Help Our KMRD experts are available to become your risk management team. And once your assessment is completed, partnering with KMRD can help you manage risk through insurance and risk programs backed by our disciplined approach, proven process, world-class service team, and our collaborative risk management portal.
