CLAIMS MANAGEMENT PROCESS

1. ANALYZE YOUR COVERAGE

 Review the provisions and exclusions of your policy.
 Explain how we analyzed your policy so that you understand how it
relates to your loss.
 Assist you in understanding the requirements of your policy.
 Help you maximize your financial recovery by developing a proactive
personalized strategy to handle your claim.

2. ASSIST WITH YOUR IMMEDIATE NEEDS

 Request that the insurance company release an advance of funds.
 Organize and prepare a complete list of additional living expenses (for
the homeowner) and work with you and your insurance company in
order to get reimbursed for them.
 Organize and prepare a business continuity plan (for the business
owner) and work with you and your insurance company to facilitate
continued operations in a timely manner.
 Help you find temporary accommodations for your family or business
if your loss causes you to relocate.

3. PREPARE A DAMAGE ESTIMATE

 Provide a detailed review of all damage to your property,
documenting damage to all areas.
 Provide line item estimates, calculate quantities, unit cost and total
costs to cover your loss.
 Prepare and submit all of the above to the insurance company using
industry-standard forms; thereby, enhancing a prompt and accurate
response to your claim.
4. STAND BY YOU WHILE NEGOTIATING YOUR SETTLEMENT
 Attend all meetings with adjuster(s) so that you can get back to your
normal schedule.
 Report details and action items of each meeting on a regular basis.
 Communicate all settlement offers to you and recommend whether to
accept them or negotiate further.
 Manage any insurance claim problems or challenges.
 Accept settlement offers only after your review and consent.

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5. SETTLE YOUR CLAIM SUCCESSFULLY
 Obtain all that is rightfully due to you from the insurance company.
 Resolve claims as quickly as possible.
 Help return you to your normal lifestyle or get you back to business as
usual.

Risk management is the process of identifying, evaluating, and

prioritizing risks followed by integrated and economical application
of resources to reduce, observe, and control the probability or
impact of unfortunate events or to maximize the realization of
opportunities.
Importance Of Risk Management
To highlight the importance of risk, here are some reasons all employees
should care about risk management.

1. Everyone Should Manage Risk

As most business people know well, sometimes the risk is necessary in
order to achieve success. Despite this, we sometimes see risk management
as “the department of no” — those who turn down any project plan that
seems to have any potential risk. The purpose of risk management is not to
wipe out all risks. It is to decrease the negative consequence of risks. By
working with risk managers, employees can make smart decisions to
prevent risks and improve the chance of being rewarded.

2. Makes Jobs Safer

Health and safety are integral parts of a risk manager’s role. They actively
seek problem areas in the organization and look to identify them. They use
data analysis to identify damage and injury trends and implement strategies
to stop them from occurring again. This benefits employees in physical work
environments, such as construction, but can also benefit office employees. A
safer workplace is better for everyone and is impacted by risk management
dramatically.

3. Enables Project Success

Risk managers help employees from all departments succeed with their
projects. Just they have to evaluate risks and implement strategies to
maximize organizational success. It can also apply to individual projects. If
something goes wrong, there will already be a strategy in place to handle it.
This encourages employees to prepare for unexpected risks and maximize
project output.

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4. Reduces Unexpected Events
Most people don’t like surprises, specifically when it has an organizational
impact A risk manager’s goal is to find out all possible risks and then work
to prevent them or best manage them. It’s impossible to figure out every
risk scenario and address them all, but a risk manager makes unpleasant
surprises less likely and serious. The risk management department should
first place an employee turns to when it seems like something serious could
go wrong and the risk management plan is already there for it.

5. Saves Time and Effort

Employees at all levels submit data to the risk management department
when incidents occur. These tasks are often completed in the most
inefficient ways. By integrating these tasks, the risk department can ease
the burden of tedious data submission from employees, allowing them to
direct time and energy towards their correct roles. With a solid process in
place, it is easy for employees to agree to high ROI risk management
initiatives and facilitate risk managers’ roles and receive the benefits of a
formal risk management system.

6. Benefits Culture
An effective risk management culture is better for all parties, including
frontline employees, risk managers, executives, and decision-makers. It
makes a mindset of prevention and safety that passes through the
organization and influences the actions of employees. It predicts
possibilities for performance and sends a positive image to the public.

7. Guides Decision-Making
Decision-making is a difficult process, especially when making important
choices that will have a large impact on future progress. Risk management
data and analytics can guide employees in making wise strategic decisions
that will help to fulfil organizational objectives. They can also evaluate the
strengths and the weaknesses of a decision and provide recommendations
on what risks to maintain and which to avoid.

Risk Management Process

There are five necessary steps that are taken to manage risk; these steps
are considered as the risk management process. It begins with identifying
risks, evaluates risks, then the risk is prioritized, a solution is implemented,
and finally, the risk is controlled.

1. Identify the Risk

The first step of risk management is to identify the risks that the business is
discovered to in its operating environment. There are many types of risks,
including legal risks, environmental risks, market risks, regulatory risks,
and much more. It is important to identify as many of these risk factors as

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possible. In a manual management environment, these risks are written
down manually.

If the organization has employed a risk management solution, all this

information is included directly in the system. The advantage of this
strategy is that these risks are now transparent to every stakeholder in the
organization with access to the system. Rather than this crucial information
being locked away in a report which has to be requested via email, anyone
who wants to see which risks have been found can access the information in
the risk management system.

2. Analyze The Risk

Once your team identifies potential problems, it’s time to go a little deeper.
How likely are these risks to take place? And if they take place, what will
the consequences be?

During this step, your team will examine the probability and fallout of each
risk to choose where to focus first. Factors such as possible financial loss to
the organization, time lost, and severity of impact all play a part in precisely
analyzing each risk. By placing each risk under the microscope, you’ll also
expose any common issues across a project and further improve the risk
management process for future projects.

3. Prioritize the Risk

After analyzing the risks, prioritization begins. Rank each risk by factoring
in both its possibility of happening and its potential impact on the project.

This step gives you a comprehensive view of the project at hand and
pinpoints where the team’s focus should lie. It’ll help you identify useful
solutions for each risk. This way, the project itself is not interrupted in ways
during the treatment stage.

4. Treat the Risk

After prioritizing the risks, dispatch your treatment plan. While you can’t
expect every risk, you should have set up the previous steps for the success
of your risk management process. Starting with the highest priority risk
first, task your team with either solving or at least reducing the risk so that
it’s no longer a risk to the project.

Effectively treating and moderating the risk also means using your team’s
resources properly without hindering the project in the meantime. As time
goes on and you develop a larger database of past projects and their risk
logs, you can expect potential risks for a more proactive rather than
reactive approach for more efficient treatment.

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5. Monitor the Risk
Transparent communication among your team and stakeholders is crucial
for the ongoing monitoring of potential threats. And while it may seem
you’re herding cats sometimes, with your risk management process and its
corresponding project risk register in place, putting tabs on those moving
targets becomes anything but risky business.

Risk Management Approaches

After the company’s exact risks are found and the risk management process
has been applied, there are several strategies companies can take regarding
different types of risk:

1. Risk Avoidance
While the complete elimination of all risks is hardly possible, a risk
prevention strategy is planned to deflect as many threats as possible in
order to avoid the costly and disruptive effects of a damaging event.

2. Risk Reduction
Sometimes companies can reduce the amount of damage certain risks can
have on company processes. This is done by adjusting particular aspects of
an overall project plan or organizational process, or by scaling down its
scope.

3. Risk Sharing
Sometimes, the effects of risk are shared or distributed among several of
the project’s members or business departments. The risk could also be
shared with a third party, such as a dealer or business associate.

4. Risk Retaining
Sometimes, companies decide a risk is worth it from a business point of
view, and decide to keep the risk and deal with any possible side effects.
Companies will often keep a certain level of risk if a project’s expected
profit is greater than the costs of its probable risk.

Types of Risk Management

Business Risk
Business enterprises take these types of risks themselves in order to
increase shareholder values and profits. For example, companies offer high-
cost risks in marketing to introduce a new product in order to gain higher
sales.

Non- Business Risk

Non-business risks are not under the control of firms. We can term risks
that originate out of political and economic imbalances as non-business
risks.

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 Financial Risk
Financial Risk as the term refers to the risk that includes a financial loss to
the firms. Financial risk arises because of instability and losses in the
financial market caused by movements in stock prices, currencies, interest
rates, and more.

Limitations of Risk Management

 Using data in decision-making processes may have poor results if simple
indicators are used to reflect the much more complex realities of the
situation.
 Adopting a decision throughout the entire project that was intended for one
minor aspect can lead to unexpected results.
 Lack of analysis, expertise, and time.
 Computer software programs have been built up to simulate events that
might have a negative impact on the company.
 Analyzing past data to identify risks requires highly trained people. These
individuals may not always be elected to the project.
 Value-at-risk efforts focus on the past instead of the future. Therefore, the
longer things go effortlessly, the better the situation looks. Sadly, it creates
a downturn more likely.
 Risk models can provide organizations with the false belief that they can
assess and regulate every possible risk. This may cause an organization to
ignore the possibility of novel or unpredictable risks.
 An organization’s risk management policies are insufficient and lack the
history to make proper evaluations.