Risk Management

By: Kyle J. Wimer, CRIS, Assistant Sales Manager, Engle-Hambright & Davies, Inc.

It is hard to believe that we are closing in on a full year of mask-wearing and social distancing. Constantly changing mandates and protocols forced abrupt changes to an organization’s operational procedures. However, the prioritization of risk management has led the construction industry to be a leader during a national pandemic.

The collective ingenuity and forward-thinking over the past twelve months have proven that the construction industry is adept at prevailing through adversity. It was a pivotal moment in which organizations needed to act safely and without hesitation yet continue operating to protect the livelihood of their employees and the overall financial health of the organization. This past year demonstrated, more than ever, that evolving risk management program are a fundamental component to the construction industry’s success.

Adopting an evolving risk management program is a switch in mindset that changes an organization’s perspective from a frustrating insurance requirement – associated with a high premium payment – to distinguishing it as a critical business discipline, which protects an organization’s assets. This mindset is necessary for the creation of well-defined policies, the development of written procedures identifying and correcting risks and the manifestation of a safety-oriented operating culture. When this is embraced, employees focus their time on tasks that lead to direct financial growth within an organization.

It is the details that are embedded in a risk management program that symbolize the true health of the organization in which it is aimed at protecting. A sophisticated approach includes the following measures: identifying risks, knowing the financial tolerance per risk event, understanding how employee protocols relate to specific insurance coverages that are in place, and detailing what a controlled environment should look like within the corporate structure. The utilization of a sophisticated risk management program thereby helps ownership better assess their strategic vision while shaping an organization’s direction.

While sales may be the lifeblood of an organization, the glue that holds it all together is a well-defined, evolving risk management program. It is a living program that grows and matures along with the organization and shields the company from the imminent dangers we all face.

So why have an evolving risk management program? To be safe, to be astute and to propel forward as an organization.

Posted March 26, 2021