Business leaders should know that is imperative to develop strategies to minimize the risks in their companies by creating a permanent and a monitored risk management plan. The core of the plan may consider the creation of a culture among the members of the organization about the importance of the creation of a balance between productivity and risk management.
A risk Management plan may accomplish the following five steps: identifying risks, analyzing data, controlling risk, financing and transferring the risk.
However, transferring the risk entirely to insurances when policies come for renewal is not the right decision. Commonly, most of the policies have deductibles, exclusions and limits in coverage. Therefore when claims arise the insured always has to pay the deductibles; if the amount of money to pay to third parties as result of the claims exceed the limits of the insurances then the insured could loss thousands or millions of dollars.