Risk Management: The 5 Step Process

In our last post, we discussed some of the basics of risk management and the need for any emergency responder to implement this in their organizations. In addition to protecting your clients with a Firefighter General Liability policy, share the following information with them regarding the five-step risk management process.

Identifying risks.

Identifying and analyzing the risks within our organizations is by far the most in-depth and time-consuming phase. Risk identification is first in the assessment process. Risk factors to consider include (among others) department territory and jurisdiction, entity or segment of the public served, and your personnel. Fire service personnel can be an overlooked risk factor in many organizations, yet it is vitally important that you consider the wide personality variations that come with a diverse group of individuals—especially when faced with the dynamics involved with many facets of our profession, states Fire Engineering.

Especially for people in highly influential roles within the organization, their decision making and behavior should be monitored and regulated closely to prevent embarrassing the company. Further, consider the losses in terms of auto damage, workers’ compensation, negative media attention, damage to property, etc.

Analysis.

Analyze all of the risks that are present within the organization and prioritize them. Focus on the factors that have a high-risk factor, even if they aren’t very likely to occur.

Control and risk management implementation.

Determine how to best mitigate the identified risks. Exposure avoidance, segregation of exposures, contractual transfer, and a solid loss reduction/prevention program are common recommendations. Choosing the one most effective for the situation will depend on the specific circumstances. Make sure to project a specific intended goal, along with any potential effects on department operations, recommends the article.

For processes that need to be amended, consider the following:

  • Allow plenty of time to plan for the change.
  • Prepare formal documents on the rules that need changing.
  • Educate employees on how this new implementation will take effect.

 

About Provident Fire Plus

At Provident Fire Plus, we understand the risks that volunteer firefighting departments face on a regular basis. Our unique underwriting goes beyond what is typically included in insurance policies, extending coverage to commercial autos, line of duty protection, damage to third party property, and more. For more information about our comprehensive policies and how we can work for your clients, contact us today at (855) 201-8880.