by Matthew A. Struck, CPCU, ARM – November 26, 2017
The most effective risk management programs are achieved through buy-in throughout the entire organization. From the janitor’s office all the way up to the C-suite, everyone needs to be on board. So how do you achieve an organization-wide risk management culture?
Benefits of an Organization-wide RM Culture
- Lower claims costs
- Lower likelihood of catastrophic claims
- Better ability to capitalize on opportunistic risks
- Empowered workforce that has a vested interest in the Risk Management culture of the organization
- Higher levels of efficiency and productivity
- Achievement of operational and financial goals
- Stronger brand image and higher levels of good-will
Best Practices for Achieving an Organization-wide RM Culture
- Establish your commitment to risk management in your handbook
- Require that the commitment to risk management comes from the top of the organization – Leadership should lead by example and never embody “Do as I say, not as I do.”
- Commit to training your personnel to achieve a higher standard of job performance as well as deepening their understanding of the organizational culture and values
- Empower workers at every level to be able to contribute to the risk management culture – regardless of seniority, any worker should be able to call a halt to an operation if there is a safety concern or potentially harmful condition
- Establish and consistently stick to chains of communication – never discipline or discourage an employee from elevating a concern; always be accessible to communication at every level of the chain
- Incentivize good risk management on an organization-wide, division-wide, and individual level – always call attention to positive behavior that reinforces the culture through public communication and recognition
- Include your risk management professional/s in the crafting of policies and ideas for recognition
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*Treadstone Risk Management is an insurance broker and risk manager. We are not attorneys. Always seek legal counsel when changing/implementing any policies and procedures. Include your broker/risk manager in the process.
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