It’s a fact that companies who stop simply purchasing insurance and begin to manage risk achieve higher profits and greater market share as they improve their competitive position in their native markets.
The question is what would you rather achieve; saving 10% on your insurance premiums or adding 2 percentage points to your profit margin? It’s really a trick question as those who build systems, K.P.I’s (Key Performance Indicators) and hold all company stakeholders accountable know that many risk based lline items in their P&L are reduced not just the one labeled insurance. Thus by utilizing the science of risk management many cost drivers are impacted together, not just one. Sadly most companies don’t even know where to begin to achieve this as their goals are misaligned with their insurance broker’s which is a whole other article.
One of the reasons large companies get large is they understand a risk management department doesn’t actually cost anything (revenue neutral), best case scenario they actually return a significant ROI.
Worse, what we are really competing against is the day to day noise CEOs and CFOs deal with INSTEAD of implementing big picture ideas like building out a risk management department to lower their risk-based costs. Building systems that will achieve longer term, more sustainable results.
In that spirit we present this piece which is based on one of our favorite blog authors Seth Godin. There is a reason his blog is THE most read blog in the country. His ideas are so very thoughtful as his brilliance is his ability to distill down some very complex ideas and thoughts into a prose that is accessible to everyone. I highly suggest that you subscribe to his blog if you are a big picture type person who sees the world from your own unique perspective. I am republishing a blog post he did called INSTEAD as I found it brilliant.
FROM SETH GODIN’S BLOG :
INSTEAD :
“What would have happened if you and your organization, instead of working on today’s crisis, built something worthwhile for tomorrow?
What would have been discussed instead?
What would have been designed instead?
The urgency of the day feels like an appropriate reason to step away from the important thing we might have been doing instead.
Weeks or months later, we don’t even remember what that urgent thing was. All we have to show for it is the thing we didn’t build.”
Bravo Mr. Godin , same could be said for family and friends…..
On behalf of your millions of followers keep on musing you make the world a better place.
