Risks are an integral part of running any successful business. From the perspective of the entrepreneur or company leadership risks are not only a negative thing, since often bigger risks lead also into greater growth potential and higher margins.
Globalization and technology have changed significantly the risk environment and risk management of businesses. A comprehensive planning of risk management, wide-angle risk prevention, and purchasing insurance to cover for risks is more important than ever for businesses operating in all industries.
Globalization and technological development are changing risks significantly for businesses
The complexity and predictability of risks for businesses are impacted by the following factors:
a fast-growing business may struggle with keeping their risk profile updated.
2. Suppliers, subcontractors and service providers:
A successful business usually relies on a network of external partners, which makes the risks very complex and global.
The world is becoming smaller and global changes in economic trends impact directly also domestic businesses. Most companies are operating in global markets or they are closely tied to neighboring economies, which makes the risk profile automatically more complex.
4. Technological development:
Company risk profiles have been dramatically changed with the introduction of new technologies. Cyber is a relatively new type of risk, applicable to all businesses through ERP, cloud services or information security. The cyber risk goes way beyond mere hacking incidents and can lead to business interruption and severe financial damages or tarnished brand image. At worst cyber risks can jeopardize the entire business strategy.
The Risk Advisor is a modern and flexible risk management solution
Imagine a world of doing business where you never had to worry about risks. Would decision-making be more bold and growth faster without risks? These fundamental questions were pondered at Marsh, a global leader in advisory on risk management and insurance now when the field of risk management is changing more rapidly than ever.
RMaaS, Risk Management as a Service, is a modern, comprehensive range of services, providing powerful tools for assessing and managing risks, as well as real-time information for decision-making.
The innovative Risk Advisor is a disruptive solution to future challenges. An outsourced service, tailored to fit your business requirements, connecting you with a network of experts, and enabling cost efficient risk management unchaining your resources to success and growth initiatives in your company.
By outsourcing risk management as a separate cost-efficient service, a business can focus on its core activities. Experts will follow and update the business’ risk profile to reflect growth and the developments in your business environment. By understanding risks in business and managing those that can be managed, unnecessary costs can be avoided, thus making business more predictable and profitable.
Risks have to be taken to make profits, but many risks can be managed and controlled. Professional risk management is instrumental in running a reliable business with a healthy brand image. Especially startups and growth companies should purchase appropriate insurance coverage for liability or professional indemnity risks prior selling to global markets not only to be insured but also to brand themselves as global players and raise confidence in future clients and suppliers at negotiation phase already.
Identify the risks of your business – Take a free risk test
We at Marsh help our clients to define and manage risks in order to enable new opportunities for growth. Marsh has the broadest expertise in the market place regarding risks of different industries including special know-how on insuring new technologies. Our core business is advising companies operating or selling in the international markets.
Choosing a right partner for risk management is a key decision in succeeding in business. Marsh Finland is launching the Risk Advisor service, a RMaaS solution for businesses of all sizes and operating in all industries. The Risk Advisor provides a variety of tools and a global network of experts for managing risks and assessing their financial impact on business. The goal for the Risk Advisor is to provide transparency in risk management, making it more simple and covering the entire lifecycle of a business.
Do you fully understand the risks of your company? Take the free Marsh Risk Testto learn what risks are involved in your line of business and how to prepare for them now and in the future. The Marsh Risk Test makes risk management visible to startups, growth companies and SMEs: e.g. what to consider when going global, how to prepare for cyber risks or how to assess the global risk environment.
Take control of your business risks – take the Marsh Risk Test today!
About the Author
Marsh Finland CEO Tuomo Kemppainenhas spent his entire career supporting clients to succeed in global markets and helping them with the challenges of insuring businesses against risks. Marshhelps clients define and manage risks – helping them to unlock new business potential and opportunities for growth.