Risk Management & Loss Prevention

Risks come from employees, environment or property, directors’ and officers’ actions (or inactions) or from products themselves. Organizations large and small risk corporate fraud, exploitation of intellectual property rights, breach of corporate governance codes and dependence on technology systems. Today’s modern economy also brings a multitude of new risks, especially post-Sept. 11. We witnessed a downturn in world stock markets, the revelation of massive accounting firm scandals and alterations of key industry relationships. The insurance industry itself has lost the ability to concurrently absorb poor investment performance, catastrophic loss and competitive premium pricing, resulting in a serious shrinkage of the domestic and international capacity to underwrite or reinsure risk.

Reducing Risks While Saving Your Company Money Is A Complex Task.

  • Do you believe you are adequately protected?
  • Do you believe your risk management program is keeping pace with the times?
  • Is your program complete and cost-efficient?

In light of these facts, corporate clients are having a harder time than ever understanding whether their financial and corporate approach to risk management makes sense. Coverage must be comprehensive and well-thought out, but also must save money wherever possible. That is where The Law Offices of Cameron C. Secrist steps in. We bring a world of insight to your corporate risk management. We know that many corporate clients are not sufficiently protected by their insurance and other risk management vehicles. Many others needlessly waste money on programs that no longer fit their requirements. Our Risk Management Team does not act as a broker or intermediary. We are independent risk management counsel to you.

Businesses cannot afford to leave risks unidentified. Cameron C. Secrist’s Risk Management Team helps you achieve a fully integrated risk management program quickly and cost-efficiently. Collectively, members of our Risk Management Team have represented both policy holders and carriers, provided advice to regulators and legislators and have the combined experience necessary to deliver counsel on all facets of your risk exposure.

We start by identifying and evaluating the risks your organization faces. No matter how small or how large your organization, our team will make a critical analysis of how efficiently your risk management strategy is working and how that strategy fits within the organization’s current business plan.

  • Are there risks which have not been covered?
  • Are there risks which have been covered using an inappropriate or expensive plan?
  • Does the current business plan permit certain risks to be retained?
  • What are the tax implications of a change in approach?
  • Could you deal with certain risks more efficiently using alternative risk transfer (ART) techniques?

Cameron C. Secrist is experienced in advising clients on insurance, reinsurance, self-insurance, financial products, captives and sophisticated (ART) solutions. We have innovative and practical corporate programs to help limit your exposure and reduce the overall cost of your risk management program.

Representative Experience

Cameron C. Secrist provides cutting-edge representation to clients in purchasing risk management-related products. We have an established, successful history in the risk management arena. What makes us different from other firms is our lawyer’s knowledge of all aspects of the risk transfer industry coupled with the resources we bring to each representation.

Risk Management, Loss Prevention and Internal Audit

Due to the increased emphasis on internal control, as mandated by the Sarbanes-Oxley Act, many retailers have developed a store compliance process to monitor, quickly identify and remediate potential risks. Whether it is reducing shrink or complying with SOX, a thorough, store-level compliance process is essential for protecting, substantiating and reporting on company assets and the processes for monitoring them.

The most effective store compliance processes benefit from synergy (i.e., the sharing of resources and information) among the three most influential departments in loss control: risk management, loss prevention and internal audit. The following section outlines how the three departments can collaborate to better manage loss control and compliance.

Here are the 6 techniques associated with risk control.

If you’re a business leader, then you already know the importance of risk control. It’s imperative that your business has a formal policy to limit the loss of assets and income.

  1. Avoidance – Avoidance is the best means of loss control. This is because, as the name implies, you’re avoiding the risk completely. If your efforts at avoiding the loss have been successful, then there is a 0% probability that you’ll suffer a loss (from that particular risk factor, anyway). This is why avoidance is generally the first of the risk control techniques that’s considered. It’s a means of completely eliminating a threat.
  1. Loss Prevention – Loss prevention is a technique that limits, rather than eliminates, loss. Instead of avoiding a risk completely, this technique accepts a risk but attempts to minimize the loss as a result of it. For example, storing inventory in a warehouse means that it is susceptible to theft. However, since there really is no way to avoid it, a loss prevention program is put in place to minimize the loss. This program can include patrolling security guards, video cameras, and secured storage facilities.
  1. Loss Reduction – Loss reduction is a technique that not only accepts risk, but accepts the fact that loss might occur as a result of the risk. This technique will seek to minimize the loss in the event of some type of threat. For example, a company might need to store flammable material in a warehouse. Company management realizes that this is a necessary risk and decides to install state-of-the-art water sprinklers in the warehouse. If a fire occurs, the amount of loss will be minimized.
  1. Separation – Separation is a risk control technique that involves dispersing key assets. This ensures that if something catastrophic occurs at one location, the impact to the business is limited to the assets only at that location. On the other hand, if all assets were at that location, then the business would face a much more serious challenge. An example of this is when a company utilizes a geographically diversified workforce.
  1. Duplication – Duplication is a risk control technique that essentially involves the creation of a backup plan. This is often necessary with technology. A failure with an information systems server shouldn’t bring the whole business to a halt. Instead, a backup or fail-over server should be readily available for access in the event that the primary server fails. Another example of duplication as a risk control technique is when a company makes use of a disaster recovery service.
  1. Diversification – Diversification is a risk control technique that allocates business resources to create multiple lines of business that offer a variety of products and/or services in different industries. With diversification, a significant revenue loss from one line of business will not cause irreparable harm to the company’s bottom line.

Risk control is a key component in any sound company strategy. It’s necessary to ensure long-term organization sustainability and profitability.

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Get in touch with us directly and we'll help assist you with all of your Risk Management & Loss Prevention needs.

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Get in touch with us directly and we’ll help assist you with all of your Risk Management & Loss Prevention needs.
Get in Touch With Us Now!