Why is risk management important today?
The desire to take risk and the ability to understand risk is fundamental to how the global economy functions. Companies need to take on risk in order to innovate, explore and expand. A company needs to ask, what are the upsides and downsides of risk? A progressive company will use enterprise risk management to align with a consulting company to determine the complexity of the risk. The world is very small, and one event on the other side of the world can impact your business here. Q. What types of insurance should companies carry? The kind of insurance needed depends on the kind of business. Every business has its unique exposures and unique risks. Companies need the basic compliance insurance, such as workers’ compensation, and they will need general liability and maybe directors and officers (insurance). Look at the unique exposures within your company. Based on those individual risks that are special to your company, then you can go out and look for insurance to cover those areas.
