Any risk review process must include the following steps:
Formal risk assessment
- A detailed inspection of the organisation’s physical assets. This would extend to include buildings, plant and equipment and any other structures as owned by the entity.
- A review of the operational procedures as possessed by the organisation, in order to “stress test” them relative to best industry practice.
- To investigate the financial standing of any organisation, in order to assess the optimum mix of risk retention and insurance purchasing.
- To examine the insurance structure as in place and as to whether or not it matches the risk profile of the organisation concerned.
- To review possible amendments to the existing insurance regime in order to optimise the programme.
Assessment report
An analysis of the organisation’s assets reviewing:
- General condition of the property.
- Effect on the organisation’s business activities should damage / failure occur.
- Photographic evidence to provide insurers with a visual understanding of the risk.
- Financial analysis of the organisation and resilience to potential losses.
- A general review of an organisation’s general operating procedures.
- An analysis of risk mitigation measures and how it effects the organisation’s risk profile.
- Examination of organisation’s insurance record.
- An analysis of the risk profile of the organisation concerned.
Tendering of insurances
A procedure to include the following features:
- A selection process of brokers with experience within the organisation’s sector.
- A selection of suitable underwriters with knowledge of the relevant sector.
- Presentation to possible insurers through selected brokers.
- An examination of tenders as submitted weighing cost versus coverage issues
- A selection of suitable broker and insurer offering optimum solution.
- Ensuring regime as proposed is successfully implemented.
