|
Risk is inherent to life. Whether you realize it or not, you face decisions ever day on how to manage risk. This can be as simple as wearing your seat belt in a car, or waiting for the light to change before crossing the street. Simple risk management involves dealing with risk in one of four ways:
• Avoiding the risk altogether
• Ignoring the risk
• Accepting the risk and altering behavior to minimize it
• Transferring the risk to another party
Insurance is a useful tool to help manage financial risk by transferring it to another party. At Lovsted Worthington, we are in the business of indentifying, analyzing, and managing risk. Our goal is to work with our clients in developing a plan to manage risk that fits the individual needs of each client, depending upon exposures and appetite for risk. Some of the methods we can help you deal with this include:
- Defining what risks are inherent to a situation
- Helping discover risks that may be unknown
- Choosing method of dealing with risks
- Structuring ways to transfer risk other than insurance (contractual risk transfer)
- Choosing what risks to insure against
- Selecting appropriate risk retention levels
- Providing competitively priced insurance products for those risks
Through this process, we can help individuals and businesses evaluate and understand their own risks. Only some of the risk you face can be insured against, but we can help you understand and rationalize decisions about which risk can be effectively insured. |
