6 "Rules of Thumb" for Small Business Risk Management

Summary

Ryan Hanley outlines six key risk management principles for business owners to follow in order to prevent and mitigate losses: don't risk more than you can afford to lose; don't take big risks for small rewards; consider event likelihood and impact; all losses affect the bottom line; insurance is not a substitute for risk control; and proactively manage risks. He advises consciously applying risk control and financing to address every potential business risk. Hanley states that his insurance agency aims not only to provide coverage to help clients recover after a loss, but also to give risk management guidance to reduce the chance of accidents happening.

Takeaways

• 😀 My role is to help business owners get maximum benefit from insurance and provide risk management guidance
• 😟 Manage trade-offs of actions that can increase risk like adding staff or expanding location
• 🤔 Consider frequency and severity of accidents to prevent them or reduce impact
• 😨 Not having insurance means you pay for any damage out of pocket
• 😠 Don't treat insurance as substitute for risk control
• 🧐 Consciously assign risk control and financing to potential risks
• 😃 See job as providing insurance and risk management guidance to reduce chance of accident
• 👍 Give us a call if you want a proposal for your business insurance program
• 🔍 Click the link to subscribe to our Risky Business newsletter
• 😊 We'll help you find peace of mind

Q & A

What is the main topic of the video series this video is part of?

The main topic is risk management for businesses.

What are the six tenets or 'Rules of Thumb' for keeping a business safe according to the video?

The six tenets are: 1) Don't retain more than you can afford to lose; 2) Don't risk a lot to get a little; 3) Consider likelihood and potential impact of risks; 4) There's no such thing as an uninsured loss; 5) Don't treat insurance as a substitute for risk control; 6) Consciously use risk control or financing for every potential risk.

What does the phrase 'Don't risk a lot to get a little' mean in the context of risk management?

It means to carefully weigh the risks and rewards of any business decision or action, and don't take big risks for small potential gains.

What should you do when considering the likelihood and potential impact of risks?

You should realistically assess both how often accidents or losses could happen, and how severe their impact could be, in order to determine what preventative measures to take or how to reduce their effects.

Why does the video say there is no such thing as an uninsured loss?

Even if you decide not to purchase insurance coverage for a particular risk, you are essentially self-insuring against any losses that might occur, meaning you would still have to pay for any damages yourself.

What does the video recommend instead of only relying on insurance?

It recommends focusing on risk prevention and control measures to avoid accidents and losses from happening in the first place, rather than only relying on insurance to reimburse you financially afterwards.

What practice does the video recommend regarding potential risks?

It recommends consciously assigning both a risk control technique and risk financing option to each potential risk that could impact your business.

What two services does the video say The Murray Group provides related to risk management?

It says they provide insurance products to financially recover after a loss, as well as risk management guidance to help prevent losses and accidents in the first place.

What contact information is provided for receiving an insurance proposal from The Murray Group?

You can call 518-456-6688 or email [email protected] to begin the proposal process.

Where can you find more information about The Murray Group's services?

You can subscribe to their Risky Business Newsletter by clicking the link provided in the video or below the video.