Risk Advisory at Deerfield first & foremost starts with a clear eyed understanding that Risks are everywhere, unlimited, & never ending. Some risks can devastate a successful business operation, while some just make life miserable for a while. It helps a lot if you’re ready for them. Businesses have more than their fair share of exposure to risk. The perils associated with them are endless. In fact, it’s been said that Murphy, the originator of Murphy’s Law was a business owner before he was a scientist. At Deerfield Advisors we spend a lot of our time just thinking about what can go wrong in your operation, so you can think about what needs to go right. After all, the dreaded Murphy can raise his proverbial ugly head at any time. Many of our clients wonder just what their potential risks really are. Fact is there are lots of risks, but, there are four that have proven to pose their fair share of challenges for the business owner.
MAJOR BUSINESS OWNER RISKS
• General Liability Risks
• Employment Practices Liability
• Risk of Loss to Property
• Loss of Business Income
Although we have them categorized here in an orderly sequence, in the real world they often overlap. But it’s not enough just to identify these risks, now we have to deal with them. We recommend five ways the business enterprise should address these risk exposures.
BUSINESS RISK PROTECTION TECHNIQUES
• Avoidance • Mitigation • Monitor • Transfer • Assumption
Tactical Risk Management
The smart risk manger will use all five judiciously & risk transfer through insurance only as a last resort. Part of our job as Risk Advisors & managers is to make sure nothing falls through the cracks that could come back to bite you later. The key is vigilance, never letting your guard down, & constant monitoring with attention to detail. We never stop searching for practical strategies aimed at reducing the probabilities of those risk occurring in the first place. Now that’s “value added.”
Deerfield Advisors is dedicated to helping our clients protect their business from financial loss through tactical, strategic, and well-reasoned risk management strategies. If you’re concerned about your own risks, let’s talk.
Risk Defined – The chance, potential, or possibility of a fortuitous, unforeseen, and unexpected occurrence of loss.
Everyday, all across Texas, thousands of business owners wake up thinking about their potential risks, plural. Many know those risks are out there but aren’t really sure just what they are and what form they take. And as everyone knows, it’s a dangerous world out there, calamity, misfortune, and adversity can & will seemingly come out of nowhere. Risk Advisory at Deerfield begins with an understanding of this unfortunate fact, and that our business clients want their interests protected. Our job is to first, identify those various and sundry risk exposures, and second, implement the techniques & strategies necessary to mitigate them.
A conceptual framework for understanding your major risk is here in order. For the business enterprise, there are an exceptionally significant number of all types of risks. As mentioned above, many business owners don’t even know what their risks are, so for starters, lets identify the two major risk categories all business enterprises face, then go on to list the twelve subcategories.
THE 2 MAJOR BUSINESS RISK CATEGORIES
Property & Liability
1. Property Risk – The chance of loss of Assets, be they business property, building & company vehicle.
2. Liability Risk – Legal liability, the risk of monetary loss from lawsuits or the threat of lawsuits from customers, vendors, employees or the public.
The 11 Business Risk Subcategories:
Risk Mitigation Defined
Once you understand what your risks are, the next step is to think about how to deal with them. This is what we call Risk Mitigation. It’s simply the effort employed by a business enterprise to systematically reduce the extent of exposure to risk & the probability of its occurrence
Risk Mitigation strategies
What strategy is used when depends on the particular peril & hazard you believe likely to occur. The first step is to create a Risk Mitigation plan committed to writing, then followed judiciously. We will create that plan for you once we have the information gleaned from conversations with you about your unique bushiness risk exposures. Every technique should be on the table. From safety & loss control methods to risk transfer, every possible mitigation technique should be fully explored. At Deerfield we think outside the box to find creative strategies that are pragmatic in their application & consistent their effectiveness.
The Big Six Risk Mitigation Techniques
1. Risk Avoidance 2. Risk Reduction 3. Hazard Prevention
4. Risk Sharing 5. Risk Retention 6. Risk Transfer