Written by An IT-controlled risk assessment & monitoring tool from GrECo ensures the transparent depiction as well as the management and monitoring of operational location risks. This is increasingly important for property and business interruption insurances.
More and more insurers are focusing on restoring measures in property and business interruption insurance. Companies are therefore increasingly realising that it is difficult to find the necessary insurance capacities for badly protected or loss-affected risks, especially in exposed industries.
It is all the more important for companies to know their own risk quality and to manage it. Which improvement potentials make sense? How can the risk quality, implemented and planned improvement potentials and their positive effects for risk carriers and other stakeholders be presented transparently and interactively? These are the decisive factors not only to ensure the continuation of the operations in the best way possible, but also for tailored insurance solutions for property and business interruption risks. It is ultimately a matter of addressing the appropriate insurance markets as part of effective balance sheet protection.
The GrECo risk assessment & monitoring tool
GrECo Risk Engineering GmbH has developed a risk assessment & monitoring tool to create risk profiles; this tool has already been used successfully for several years. The tool depicts the entire risk management cycle from identifying and assessing to the management and monitoring of operational risks.
Risks are identified based on documents, on-site inspections and interviews with GrECo risk consultants. They prepare risk maps for specific industries in advance, that shows relevant topics and defines protection requirements. The data recorded as part of the risk identification is compared with the defined requirements and evaluated. Negative discrepancies reveal potentials for improvement that are documented in a list of measures. A risk ratio is determined and the risk profile is presented based on defined categories.
The GrECo risk assessment & monitoring tool therefore offers an objective, transparent and simple depiction of the risk situation. If a company has several similar locations, it is also possible to benchmark the risk quality of these locations. The tool can also be used for risk comparisons in an industry.
Cost-benefit analysis as a basis
The knowledge of its own risk profile evaluated by experienced and independent experts is an essential requirement for defining the future risk strategy and the effective use of safety equipment based on objective evaluation criteria. A cost-benefit analysis completes the functions of the tool.
This provides the management with a basis for making decisions on prioritising measures and the investment involved. All this strengthens the company’s underwriting footprint in order to ensure sufficient capacity at risk-adequate premium costs for property and business interruption insurance, even in an increasingly difficult insurance market.
If there are any questions about the risk assessment & monitoring tool, GrECo Risk Engineering GmbH’s team will be happy to answer them.
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Johannes Vogl
General Manager GrECo Risk Engineering
T +43 5 04 04 – 160