3 Reasons why Risk Assessments are an investment not a cost

A risk assessment is an evaluation of the various potential hazards faced by your company. A good risk assessment includes key assumptions and uncertainties and the ways in which they may affect the overall level of risk for the business.

A risk assessment is a necessary and legal requirement, but it doesn’t need to be a necessary cost. With the right approach it could be an investment for your business.

1) Reduced Insurance Premiums

Having a well thought out risk assessment could save you money on insurance premiums. Insurance companies are basically placing a price on risk. If you can lower your overall exposure to risk, that can be evidentially proven in your assessment, your insurance company will reward you with a lower premium.

2) Good will

Business owners want to maximise the sale value of their business.

This can be achieved if your company can create good will.  A risk assessment will help you get a better price for that business.

3) Helps you expect the unexpected

A risk assessment prepares you for the future. One of the worst things that can happen is that your business is subject to a major hazard while you are unprepared.

Dealing with the perplexity of handling a situation you didn’t anticipate beats the stress associated with the financial loss caused by the hazard itself. With a solid risk assessment, you’ll know what threats your company faces and how you’ll be able to handle them.

A risk assessment is an important part of any business strategy. The time and money involved in preparing one should be an investment can be an investment your business not a cost.