Risk managers might not be in charge of making the actual decisions regarding whether something should or shouldn’t be done at a business, but they are crucial in the decision-making process. Their role64805383_M is to offer insight and advice that minimizes overall risk while maximizing overall value to the business and organization stakeholders.

A risk manager’s job is to evaluate risks, of course – but communication of these findings to board members, senior management and others is crucial. In fact, without effective and thorough communication, a risk manager’s role is worthless to a business. Without effective communication that helps stakeholders understand the output and consequences of certain actions, an organization will almost certainly undergo more harm than good. In fact, most business crises are not linked to a lack of information or understanding but a failure to effectively communicate risk.

What does effective risk communication look like?

  • explaining the chance of a risk playing out a certain way and what the business impact will be in the scenario
  • outlining the difference between risk (which is dependent on certain scenarios) and hazard (found within a specific area)
  • helping to deal with fears and uncertainties around certain risk elements
  • managing expectations around long-term and short-term risk impact
  • improving the overall comprehension of risk-based terminology and concepts to ensure better understanding
  • educating managers about risk management decisions impacting every level of business
  • creating a culture of transparency that enables concerns to be addressed and questions answered
  • growing risk-management credibility through training, continued education and consistent, relevant communication
  • dealing with potentially conflicting interests of various stakeholders and all affected parties

Our business takes risks seriously. We can help you establish the risk management plan that’s right for you and take the appropriate steps to stay insured against potential business hazards. Get in touch with us today to find out more.

All companies need business insurance, but some businesses require an extra kind of liability insurance called directors and officers, or D&O, insurance. This coverage protects the personal assets of people serving as corporate directors and officers, as well as their spouses, in the event of being sued by employees, vendors, competitors, investors or customers for actual or alleged wrongdoing when managing an organization.

What does D&O insurance cover?

Director and officer insurance will usually cover legal fees, settlements or other costs and expenses. It’s the financial insurance for the standard indemnification clause that is part of many employment contracts. It holds officers – like those in the C-suite – harmless in their role as a company official.

Why would a company need D&O insurance?42443835 - conference room interior

Companies and their leadership teams can be sued for a number or reasons related to their corporate roles and responsibilities, including:

  • Breach of financial responsibilities that resulted in losses or bankruptcy
  • Falsification of company assets
  • Misuse or waste of company funds
  • Fraud
  • Non-compliance with applicable workplace laws
  • Intellectual property theft

What kinds of businesses need D&O insurance?

All companies – public, private and non-profit – could benefit from the assurance of D&O coverage. Companies of all sizes and industries can face litigation risks. Any company, including a nonprofit, that has a board of directors or advisory committee, should consider D&O insurance. Directors and officers from any kind of business posting any kind of profits can be sued over company management affairs, putting their personal assets at risk.

What are the benefits of D&O insurance policies?

  • Businesses with D&O insurance have protections for their profits and assets against being lost in a lawsuit.
  • D&O insurance could help companies look more appealing to investors, if they know they are protected.
  • Organizations will be better able to recruit and retain quality directors who won’t feel that their personal assets are at risk.

Our business is helping your business stay compliant as well as protect your assets and your reputation. Get in touch with our insurance experts today to identify any gaps in your insurance coverage or assess your other business insurance needs.