The Five Steps of Risk Management Leads To Lower Cost

There are five steps to risk management:

  • Identify
  • Analyze
  • Control
  • Finance
  • Measure

The most important step is “Identify” because you can’t Analyze, Control, Finance or Measure what you don’t know. Insurance is “NOT” risk management. Insurance is “FINANCING” risk. Managing risk 365 days a year vs. buying insurance 1 day a year is the key to lowering the total cost of risk (TCOR) for business.