Perspectives: Untapped opportunities for excellence — risk managers and risk control surveys

In any business, there is a unique intersection between company operations, executive leadership and the insurance markets. Risk managers occupy that space and have the rare ability to connect and communicate with all these different stakeholders. Strategically leveraging this position can be a key component of improving organizational resilience.

Risk management professionals face the daunting task of identifying, assessing and mitigating risks that could threaten their organizations’ stability. Our actions can enhance relationships, bolster credibility and reinforce the essential role of risk management within the organization.

By being active participants in our organizations’ risk control engineering programs, we can be the guardians of corporate resilience. Simply put, risk managers should attend as many risk control engineering surveys as possible.

Building rapport, credibility

One of the most significant advantages of risk managers participating in risk control surveys is the opportunity to develop meaningful relationships with on-site personnel. When risk managers are present, they demonstrate a commitment to understanding each site’s unique challenges and realities.

This face-to-face interaction helps break down barriers between management and employees, facilitating dialog about both best practices and areas of concern. By engaging directly with personnel, risk managers cultivate trust and credibility.

This rapport is crucial. When employees see risk managers on-site, they recognize that their concerns and insights are valued by corporate. This trust is vital for open communication, which is essential for identifying and effectively addressing potential risks. Moreover, this presence reinforces the message that risk management is not a peripheral function but rather a core responsibility of the company. By demonstrating active involvement, risk managers elevate the visibility of risk management all the way down to the site level.

Trust is foundational in any organization, particularly when it comes to safety and risk management. Employees are more likely to voice their concerns and insights when they feel that management is genuinely invested in their well-being. This two-way street of communication can uncover hidden risks that might not surface in a top-down assessment. The insights gained from these interactions can be invaluable, leading to more comprehensive risk assessments and tailored mitigation strategies.

Aligning risk management

Consistent participation in risk control surveys allows risk managers to assist third-party engineers in understanding the nuances of both site-specific and companywide operations. Selecting an engineering partner who is knowledgeable about the risk profiles of your specific sites is key to getting back the most useful, tailored survey recommendations that genuinely address operational challenges. This collaboration enhances the effectiveness of risk mitigation strategies and ensures that recommendations are relevant and actionable.

Every site or plant has its unique set of risks influenced by its environment, operations and workforce. Active participation in risk control surveys provides risk managers with firsthand knowledge of these realities. By understanding the specific conditions and challenges faced by employees, risk managers can align their strategies with operational needs. This alignment is critical for developing effective risk management policies that are not only theoretical but also practical and applicable.

Furthermore, risk managers can identify opportunities for process improvements and innovations to mitigate risks. They can also collaborate with site leaders to design effective and feasible solutions, ensuring that risk management is not seen as a hindrance but rather as an enabler of operational excellence.

Enhancing risk awareness 

Attending risk control surveys also presents an opportunity for risk managers to reinforce a culture of risk awareness. By engaging directly with employees, risk managers can emphasize the importance of proactive risk management. They can share best practices, highlight success stories and encourage a collective approach to plant maintenance and safety. This engagement fosters a sense of ownership among employees, making them more vigilant and proactive about identifying potential risks in their day-to-day operations.

Moreover, when risk managers actively participate in these surveys, they can provide immediate feedback and recommendations. This responsiveness enhances the risk management process and signals to employees that their safety and well-being are priorities for the organization. When workers see that their insights lead to tangible improvements, it boosts morale and reinforces a shared commitment to maintaining a safe work environment.

Uniting stakeholders

Having risk managers involved in these surveys improves communication with both insurance markets and executive leadership. It creates a direct line of communication that facilitates the sharing of insights and updates on risk management practices, strategies for addressing recommendations, and future plans about the site. When risk managers convey their findings and recommendations directly to executive leadership, it underscores the importance of a unified approach to risk management, fostering an environment where safety and operational excellence are prioritized.

Continuity and efficiency

One of the often-overlooked benefits of risk managers attending these surveys is the continuity it provides over time. By maintaining a consistent presence, risk managers can streamline the survey process, reduce redundancy in questions and minimize the time demand on local personnel. This efficiency not only accelerates the survey process but also allows local teams to focus on their primary responsibilities rather than repetitive administrative tasks.

Additionally, risk managers who have a deep understanding of plant operations can challenge any engineering recommendations they feel don’t match the operations or risk profile of a specific site. This knowledge empowers risk managers to advocate for the best solutions for the plant and the company. It also enables them to navigate the complexities of each site, ensuring that recommendations are not only practical but also aligned with the realities of daily operations.

Enabling operational goals 

Risk managers play a crucial role as conduits for plants to achieve their operational goals, such as reliability, safety and efficiency. By attending risk control surveys, they can better understand how capital expenditures affect risk profiles. This understanding allows for more informed decisions about where to allocate resources, ensuring that spending aligns with organizational priorities.

The consistency brought by risk managers across visits to different sites allows for comparative analysis of recommendations. This consistency enables the prioritization of spending at the highest levels, ensuring that investments are made where they will have the most significant impact on risk reduction and operational performance. Furthermore, by leveraging the information gathered during these surveys, plants can improve their risk profiles and prioritize expenditures more effectively.

Conclusion

In an era in which risks are becoming increasingly multifaceted, interconnected and unpredictable, the role of risk managers is more vital than ever. Their presence at risk control surveys is not merely a perfunctory job; it is an opportunity to cultivate relationships, enhance organizational culture and align risk management with operational realities. By prioritizing these engagements, organizations can build a stronger foundation for resilience, ensuring that they are not only prepared for risks but are also positioned to thrive in an uncertain world.

In the end, the investment in time and resources for risk managers to attend these surveys pays dividends in trust, safety and, ultimately, the organization’s long-term success.

Rachel J. Thuerk is Boston-based director, risk management, for Vicinity Energy, where she leads the district energy provider’s insurance, claims and risk control engineering programs. She was one of the 2023 Business Insurance Women to Watch. She can be reached at [email protected]. Robert “Jess” Muir is a Niantic, Connecticut-based senior consultant at Sigma7 Paragon Risk Engineering, where he focuses on energy, power and renewables clients. He can be reached at [email protected]