Make Risk Management a Part of Your Business's Culture - AutoSuccessOnline

Make Risk Management a Part of Your Business’s Culture

Creating and maintaining a culture centered on safety can bring your business to the next level.

Risk management is an integral part of a successful business. Business owners and leaders must internalize that philosophy to achieve maximum return on their investment. Prioritizing safety — from senior management to front-line employees — helps protect your people. It also helps you avoid errors that could dent or break the bottom line, and damage your business in ways that are difficult, or even impossible, to come back from. 

A shift in mindset is the first step. Turn your risk management program into a risk management culture. 

What’s at Stake?

Every injury, every lawsuit, every poor hire, every missed opportunity to plan hurts your business. Insurance helps pay for the direct costs of a loss, such as property damage, medical bills and legal expenses. But your business is responsible for the hidden expenses — hiring and training new employees, lost productivity, low morale and potentially higher insurance premiums — which could be two to three times the direct cause of a loss.

Don’t forget about one of your business’s most important assets: its reputation. You’re able to open your doors every day because you’ve demonstrated a history of being reliable to potential and existing customers and employees. An incident could mean disaster on many fronts. Your employees could begin to look for employment elsewhere and your clients, who depend on the products and services you provide, could take their business elsewhere, leaving you with a diminished book of business and a damaged bottom line.

A Group Effort

With a team of high-performing, safety-conscious employees who are committed to maintaining a culture of risk management, you can trust that your business is operating at or near peak efficiency. Everything flows from there, including your business’s commitment to safety. Keep the momentum going during meetings and training sessions and encourage everyone in your workforce to say something if they see something unsafe.

A Customized Approach

No two businesses are the same, so it’s important to understand that one size never fits all when it comes to risk management strategies. Even among similar operations within an industry, safety needs change from business to business. 

But whatever your specific needs are, remember that a solid foundation is key. Fulfill the basic regulatory requirements first, then examine your business’s deeper needs. Whatever your company’s approach, the success of any safety initiative is dependent on the support of ownership and management. When someone identifies a threat to safety, prompt resolution of the issue — following previously established policies or guidelines and driven by management — is important to maintaining the strength and effectiveness of a risk management culture. 

Hard to Detect, but Worth It

Solid procedures, policies and risk management practices are essential. The tricky part is that the outcomes of a good risk management program are difficult to measure. When everything goes right, you don’t have any examples to prove the effectiveness of your efforts. But think about it: a chunk of your profits can disappear, and morale can sink every time an employee slips, strains a muscle, falls or fails to follow company policies and procedures. In this case, the absence of proof is the proof. And over time, the bottom line should begin to reflect your efforts. 

In a competitive business world, where turning a profit is often the highest priority, it’s tempting to sweep risk management under the rug with the expectation that an injury or accident won’t happen. That could be a costly mistake. Focus on risk management by creating and maintaining a culture centered on safety and you can bring your business to the next level. 


Take It from Those Who Know

The safest businesses repeatedly echo four points on the value of risk management culture and its positive impact on businesses. Keep the following in mind, and always be looking out for potentially hazardous situations.

It has to start at the top. Ownership and management should model good behavior, reinforce a “safety first” message, and invest time and resources to implement sound policies and procedures. 

Empower employees. Give employees the tools to take ownership in a risk management culture. Set clear expectations and recognize positive behavior.

Take control. Many worksite incidents are preventable. Create and enforce policies related to safety, conduct and hiring. Designating a risk manager to address these critical practices is one way to take the reins.

It has a financial impact. Hidden expenses can quickly add up. Additionally, losses can impact your workers compensation experience modifier, which may lead to higher insurance costs.

Risk Management Takeaways

1. Risk management is not a hindrance. It is a priority.
2. Risk management never ends.
3. Safety is everyone’s responsibility.

You May Also Like

Google Analytics for Dummies

GA4 can help you understand which marketing sources drove traffic to your website, allowing you to compare one to another.

Google Analytics for Dummies A Simple GA4 Guide for Non-Analytics People

A Simple GA4 Guide for Non-Analytics People

G4? GA4? Google Analytics? Are they all the same, and how do they relate to the metrics my website vendor sends me? 

First off, I don't sell any products related to analytics or analytics consulting. Our company does help our dealer partners with this area, but this article is purely intended to inform, and I don't have a dog in this fight. My product is in the digital marketing realm, so we interface a ton with analytics. Moreover, I get dozens of analytics questions every day, and there’s understandably a lot of confusion about this topic.

F&I 2024 Dealer Outlook: How Online Options Will Help Dealers Better Serve Customers

Dealers must find ways to maximize F&I sales opportunities, because in this highly competitive landscape, dealerships rely on the sale of these products to enhance their bottom line and remain competitive.

F&I Outlook from Protective Asset Protection
Is a Vehicle Test Drive Still Relevant Today?

An important part of the process, the test drive is the strongest opportunity to build the customer’s positive emotions around the vehicle.

Is a Vehicle Test Drive Still Relevant Today?
Protect Your Dealership

Thirty-four percent of dealers are still lost concerning certain key components of Safeguards law compliance.

Benefits of Outsourcing Title Work

If your dealership is struggling with turnover or having difficulty establishing an efficient tag and title process, one option is to outsource this task to a third party.

Other Posts

Riding the Wave of Innovation: How Advanced Data Tools Are Transforming Automotive Appraisals

The ability to customize appraisal tools according to specific dealership needs and market dynamics ensures that appraisals are closely aligned with strategic goals, giving dealerships a competitive edge.

Riding the Wave of Innovation: How Advanced Data Tools Are Transforming Automotive Appraisals
Selecting the Ideal Car Lift for EV Servicing

When choosing the right car lift for servicing electric vehicles there are several key factors to consider.

Key Factors in Selecting the Ideal Car Lift for Electric Vehicle Servicing- Coats
Exploring Educational Opportunities with NADA and ATD

The comprehensive NADA and ATD programs, complemented by an extensive array of resources, foster excellence and innovation within the automotive retail landscape.

Exploring Educational Opportunities with NADA and ATD
Critical Thinking with the Genius Club

A lack of critical thinking is responsible for the success of every con that reaches epic proportions. We must think critically to protect ourselves from evil geniuses.

Critical Thinking with the Genius Club - Remora