If you are like most organizations, your most valuable asset is your profit or EBITDA margins (or budget surplus if you’re a non-profit). Astute leaders focus on increasing these important factors, as they are crucial to growing the reach of your operations.
Let’s discuss one way that is often overlooked:
Stopping and recapturing the existing Financial Leakage that CURRENTLY resides inside your risk management and risk control program.
What does this mean?
Simply put, there are many additional unbudgeted costs that ripple through your organization when a claim event occurs. Sure, the insurance companies likely pay for the bulk of it, but they do not cover the indirect costs that YOU absorb.
For example, a workplace accident with an injury comes with additional expenses like the costs of retraining another employee, reputational damage, and of course, business disruption. Paying for these erodes your profit margins.
To reduce this negative impact, you should:
- Quantify the Financial Leakage currently inside your risk management and risk control program. This is a finite, quantifiable, and controllable expense that prevents you from maximizing your ultimate profit potential.
- Work with a qualified firm to measure and recapture as much Financial Leakage as possible. With the proper analytic tools, our firm can assess your Financial Leakage AND create a plan to help you reduce its impact.
As an Analytic Brokerage, our firm is uniquely qualified to help assess and reduce your Financial Leakage to improve your profit margins. Beyond insurance placements, we work hand in hand with our clients as financial improvement partners.
If you’d like to learn more about how we can improve your business model, contact us for a complimentary, no obligation consultation.