​It can be difficult to insure your business for a variety of reasons. Risk management built into your regular operations can help you access a better insurance offer.

What is risk?

In insurance, risk is the possibility that a sudden or accidental loss could affect the continuation of a company's activities and operations. Theft, fire, vandalism, fraud, flooding, lawsuits or class actions: many situations can happen, and any business must be prepared to deal with them.

Even if it holds insurance, every business must know and manage its risks.

Examples of loss exposures

While every industry is different, potential losses to consider can have multiple consequences:

  • Damage to physical property, such as buildings, stock and equipment,
  • Liability in case of accident or negligence,
  • A leak of sensitive information, or that is critical to business operations,
  • Reductions in the value of your products or services after a loss,
  • Costs to repair or replace damaged property or equipment,
  • The impact a loss could have on your ability to conduct business,
  • Loss of revenue in the event of a business interruption,
  • Unforeseen extra business-related expenses.

Bottom­-line benefits of managing risk

Risk management provides a clear and structured approach to identifying all those risks. It helps to demonstrate that you are managing your activities responsibly.

A business with an effective risk management plan in place can also:

  1. Save resources such as time, assets, income, property and people,
  2. Protect its reputation and public image,
  3. Prevent or reduce legal liability,
  4. Increase the stability of operations,
  5. Protect people from harm,
  6. Protect the environment,
  7. Enhance its ability to prepare for circumstances that could interrupt business,
  8. Assist in clearly de­fining insurance needs, and,
  9. Have business continuity plans in place for the most likely loss scenarios.

While it's not possible to eliminate all potential risks, a risk management plan demonstrates your business's commitment to loss reduction and prevention.

Having such a documented program can help your business get insurance and even benefit from more advantageous pricing.

Taking actions

There are several practices for risk analysis. For example, the analysis may focus on operational, compliance (standards) or environmental risks.

Talk to your insurance representative or risk manager to find out which one best suits your business or industry.

The key steps of risk management

  1. Identifying and analyzing potential loss exposures to your business,
  2. Understanding the financial and operational consequences of these risks,
  3. Establishing measures to be taken to prevent risks based on priorities,
  4. Developing an action plan;
  5. Monitoring the plan and actions on an ongoing basis.

Do not hesitate to consult your insurance representative who will support you in your efforts.


Did you know? (business)

The business insurance market

Companies operate in a market full of opportunities, but also risk-carrying. The assessment of these risks are determining factors. Here are some tips on how to better manage your risk.


Be prepared.
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