The Financial Benefits of a Risk Management Audit Action Plan

By Steve Griffin | Posted September 26, 2017

Risk Management is a great avenue to protect your business from potential lawsuits or government fines, thus keeping your business from being shutdown due to poor control of your operations.

A Risk Management Audit Action Plan will properly evaluate your current risk management controls relating to safety policies and procedures, claim reporting practices, workers compensation, disaster planning, employment practices, and education or training needs. Assuming the project uncovers deficiencies, Insurance People assists in the design of a current insurance program to ensure that the assets of your business are properly protected and managed.

Insurance People will act as a consultant in critiquing your business’ current risk management program. In order for the audit process to be effective, the business management team must be supportive and involved. All information gathered by Insurance People will only be shared with individuals approved by the management team.

Once Insurance People meets with the business’ management team to outline the Risk Management Audit process and its benefits, we put together a plan for review and approval by the management team. Everyone then discusses the audit process and make the appropriate changes to the action plan.

Next, we begin to gather information related to claims, safety, contracts, and business continuity, as well as additional information to complete the step. Insurance People meets with selected representatives to gain understanding of operations and risk management strategies. Then, Insurance People and the business management team partner to complete the Intelligence Quotient for Risk Management (IQRM) related to their industry.

Insurance People will present our audit findings and interview observations to the business management team. We then begin to work hand-in-hand with the business management team to implement the appropriate risk management policies, procedures and controls.

Long term, the benefits of the Audit Action Plan are increased stability for both cost and insurability, positive growth of the business, less government intervention, and building a solid risk management program for others to follow and learn from.