If you talk to any big business owner, or their management team, they’ll tell you that managing mitigating and reducing risk is one of their top priorities. What they understand is that any investment they make to help reduce risk in their business is well worth it. They’ve assessed and calculated the risks and challenges their business faces, and have taken steps to eliminate them – or reduce them as much as possible.
SMEs need to be thinking along the same lines. It’s like that old saying ‘prevention’s better than a cure’. It’s much easier – and less costly – to prevent fires than it is to fight them.
When it comes to risk management, many business owners take out insurance and stop there, thinking that’s all they need to do. But when you think about it, insurance is really just the ambulance at the bottom of the cliff. It reduces the impact of an event, but it doesn’t manage likelihood of it.
Like everything else in business, the better prepared you are, the more you can reduce risk in your business:
- Identify what risks your business faces. The same few issues often trip up businesses again and again. What can you think of that keeps cropping up?
- Invest in an IT risk specialist to review your systems and reduce the risk of cyber attack.
- Regularly review your business insurance and make sure it’s up to date.
Employee training is essential, and it’s a good example of the ‘80/20’ rule. Often, 20 minutes of refresher training on key areas of management liabilities is all that’s need to significantly reduce risk.
When it comes to risk management solutions, they’ve typically been viewed as something only big businesses invest in, but the reality is that there are a number of options available now for SMEs.
The Dacreed solution is a risk management platform designed to help clients reduce and manage their actual business risk. It’s an add-on risk management used by clients to supplement their insurance policies. Already, leading brokers are providing the platform to add value for their clients.
It reduces a client’s risk profile by raising staff awareness of key issues. The greater the awareness, the lower the client’s risk profile. Delta Insurance is NZ’s first underwriter to reduce premiums for clients that use the Dacreed platform to manage risk. It’s a win-win-win scenario for the underwriter, broker, and client.
The Dacreed solution focuses on helping SMEs to:
- Keep brokers in close contact with their clients, using remote interaction tools.
- Measure and raise each staff member’s awareness of key risk areas.
- Provide information sharing that is efficient and low-cost.
We’ve designed the software so that it can be used by everyone on your team, helping them to learn, upskill and improve performance.