Recent hurricanes have increased the need for risk management services

The summer of 2017 in the United States will be marred by the devastation done by numerous hurricanes that battered the country. From Hurricane Harvey causing intense flooding in Texas, to Irma’s strong winds damage done throughout Florida to Hurricane … Continue reading

enterprise risk management

The summer of 2017 in the United States will be marred by the devastation done by numerous hurricanes that battered the country. From Hurricane Harvey causing intense flooding in Texas, to Irma’s strong winds damage done throughout Florida to Hurricane Irma’s devastation across Puerto Rico causing widespread power outages, a lack of food and fresh water and overcrowded hospitals and morgues. It is no surprise that these natural disasters caused much damage not only to communities and families, but to businesses and finance as well. When it comes down to it, natural disasters are expensive, and natural disasters are a type of risk: one that should attempt to be mitigated and managed like other types of risks.

For businesses around the country and around the world, risk management software is a common and much-needed tool to have. Risk management software works to make sure that all risks are not only identified and actively managed, but that future risks and potential risks have plans in place to help manage them as well, should they arise.

Lately, however, the terrible hurricanes, coupled with earthquakes across the world, volcano eruptions and more have reiterated to business owners the importance of having a comprehensive and updated enterprise risk management system in place.

In the case of the recent hurricanes, there were many factors that could and did contribute to money loss for businesses. Those issues include:

  • Damaged roadways and transportation systems, meaning distribution channels were no longer usable, employees could not get to work and relief vehicles had a hard time moving around the respective cities to provide medical care or supplies.
  • Power outages prohibited many businesses from being functional at all simply because they could not conduct business. For so many businesses in this day and age, access to power and internet is critical to functioning. With power out in entire communities, businesses were unable to do work at all. In the case of Puerto Rico, where power is still out, businesses are still unable to function, meaning they are losing money each day.
  • Workman’s comp claims and other injuries sustained on the job are also expensive for companies who are trying their best to rebuild after disaster. Injuries, even if they were not sustained on the job, can and will keep numerous employees from returning to work when they are able to, which will cost the company additional money either in hiring a new employee or reallocating staff time and resources to cover the duties of the position.

Due to all the natural disasters including Hurricane Harvey, Hurricane Irma and Hurricane Maria, numerous companies across the world and especially in the United States, have had a rude awakening about what could potentially happen to their own companies and businesses. Because of this, there is an influx in companies and organizations seeking a bit of comfort and guidance in risk management services so that they can be sure if another disaster strikes, they will be prepared to handle it in both a short and long term capacity.