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The invaluable cost of implementing risk control

By Bill Raab, Risk Control on October 5, 2016

Prevent instead of recover

It’s easier to prevent a loss than it is to recover from one, Zachariah Allen, founder of FM Global, once said. Allen created a mutual property insurance company in the 1800s that would insure only “good risk” factories.

The uninsured cost that results from a loss can be crippling to an organization. These costs include loss of reputation, time spent investigating and defending an incident, lost production due to organizational shock and many other expenses that are difficult to quantify prior to an incident.     

The financial impact of risk control is hard to measure due to the fact that we cannot easily calculate the impact of preventing losses.  However, we do know that an organization can incur a large expense due to a single incident, which makes loss prevention an investment that can offer a significant return.    

The goal of Glatfelter Risk Control is to work with our partners to identify loss exposures and implement changes in their operations that mitigate their risk. Establishing an effective risk control program can help an organization prevent losses and allow money previously spent on those losses to be earmarked for other items that will benefit members of their communities.     

Do you help your clients manage their risks?

 



Bill Raab, Risk Control

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