Do You Have an Effective Risk Management Program in your Office?
Every firm has a different approach to risk management, because every firm has different needs for risk management.
One of the best ways to assess your firm’s approach to risk management is to understand your firm’s risk profile.
Understanding a risk profile is much like underwriting a firms E&O policy, there must be an understanding of where there is an exposure and how much of an exposure exists.
Similar to how an insurance carrier underwrites and creates a premium for every design firm, each firm also has a different risk profile based on their unique characteristics:
• Claim activity
• Project types
• Geographic region
• Risk Management
• Business Practices
• Other features
Once a profile has been created, the firm can ask Professional Underwriters how to best assess where the higher risks may be and how to mitigate these risks with common practices.
Contract review, job evaluation, project evaluation, a client selection process, use of properly insured sub-consultants, project type, and other factors can help reduce your risk and exposure on a given project or line of work.
Please click HERE to learn more about risk management for your firm.