What is Risk Management?
If you’ve been following ArboRisk for any amount of time, you know that we believe in using a “risk management approach” to ensure our clients survive an unexpected event. But what does that really mean?
Technically, a risk management approach focuses on identifying, analyzing and controlling exposures that could have a negative impact on the business. That means a tree service must be intentional and honest when looking at their business to first gain an understanding of what could go wrong and then be open minded enough to find ways to minimize the impact of those exposures on their business.
To us here at ArboRisk, the risk management approach starts with having the simple attitude of; always seeking to improve.
All too often in the tree care industry, we hear or see the “that won’t happen to me” or “we already do everything we can” attitudes from business owners. These viewpoints block all attempts at proper risk management by closing the business owner’s mind to helpful exposure reducing ideas. Unfortunately, those attitudes are not the only dangerous mindsets we see. We have presented on 7 Deadly Sins of Work Comp at numerous national and local tree care conferences to help tree services avoid common pitfalls and implement a risk management approach.
Once the tree care company embraces an open mind, then and only then can they identify and assess the risks that their company faces and make a plan on what to do with those risks. It’s also very important to remember that purchasing insurance doesn’t mean you are practicing risk management. While insurance coverage is important it is only one part of risk management. For more on that concept, please read this article (Why Insurance is NOT Risk Management).
If you’re looking to institute a risk management approach within your business, reach out to an ArboRisk team member today.
Written by: Eric Petersen