Risk management services

Proactive Risk Management

As a business, you’re constantly managing risk. You need to plan for worst-case scenarios, like a key employee leaving or an important client turning down your latest offer. But in today’s climate, where a single decision or action can have far-reaching consequences, it’s easy to miss a risk somewhere along the way. That’s where proactive risk management comes in.

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Proactive risk management is an approach to managing the risks of an organization’s operations and supply chain in order to minimize the impact of a potential crisis on the business. It involves identifying and assessing the potential vulnerabilities in the supply chain and operations, and taking steps to prevent an incident from turning into a crisis. When an organization employs a proactive risk management strategy, it can strengthen its resilience and resilience to crisis. It also allows the business to better respond to a crisis when it arises.

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The purpose of this is to introduce you to proactive risk management, a process for identifying and mitigating potential risks as soon as they appear instead of waiting for a crisis to occur. This approach helps organizations learn about risk management consulting services and avoid the costly and time-consuming process of managing a crisis. It also improves the quality of decisions made in the moment and helps organizations avoid the worst-case scenarios.

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This document will cover the following topics:  

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•How proactive risk management works 

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•The five phases of proactive risk management 

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•Examples of proactive risk management in action Intro Background. The purpose of this is to introduce you to proactive risk management, a process for identifying and mitigating potential risks as soon as they appear instead of waiting for a crisis to occur.

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At Narogate Safety Group, we place more emphasis on Leading Indicators and assisting our clients in staying ahead of the curve. We are experts in empowering clients to be proactive rather than reactive. This is not to minimize the importance of Lagging Indicators and the value of accident investigation, root-cause analysis, corrective actions, and determining how to prevent the reoccurrence of injuries. This is also important in developing a positive safety climate. We feel the best way to manage client losses is to prevent them before they occur, when possible.

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If there is any concern regarding pricing, I educate my clients on these facts. The total cost of work injuries in 2019 was $171.0 billion. This figure includes wage and productivity losses of $53.9 billion, medical expenses of $35.5 billion, and administrative expenses of $59.7 billion. The average Direct cost per medically consulted injury – is $42,000.00 (WC Claim). The Indirect costs of that one injury will average three to ten times that, depending on the injury, so taking the low estimate of $126,000.00. Indirect costs include the value of time lost by workers other than those with disabling injuries who are directly or indirectly involved in injuries and the cost of time required to investigate injuries, file, and support claims, write up injury reports, etc.

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If we can eliminate just one injury and claim by implementing the above measures, NSG has not only justified our costs but saved or made our client’s money. A client who has Narogate Safety Group conduct the complete initial loss control service, along with ongoing monthly service, will spend $27,000.00 annually. If we can eliminate one WC claim, we have saved at least $15,000.00 in direct costs and just under $100,000.00 in indirect costs. Investing in the initial and ongoing monthly services outlined above will pay a return on investment (ROI) of $2 to $6 for every $1 invested. In summary, we simply pay for ourselves with what we do.

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I want to take this opportunity to thank you for the opportunity to assist with your loss control and prevention efforts. Should you have any questions or comments, please do not hesitate to contact us.