The financial viability of many local firms is being threatened by the current upheaval in the UK insurance market, according to broker The Beckett Group. And the firm has launched a computer-based risk assessment tool to help firms control their risks.
As their annual insurance renewal dates come round, many firms are finding that their premiums have increased by between 30 and 100 per cent.
Jeff Alcock, Beckett Risk Management Consultant, points out that the situation is worse than necessary because too few organisations take risk management seriously. He said: "Fewer than a quarter of organisations back up their computer systems reliably, have reliable health and safety procedures or secure employment processes. And less than 5 per cent have disaster recovery plans. Yet 80 per cent of firms that have a serious fire go out of business within three years - they cannot survive the disruption and hidden costs."
The problem often lies in the complexity and time-consuming nature of risk assessment, which can occupy a great deal of management time without any apparent payback, until disaster strikes.
To help firms deal with risk management, The Beckett Group is launching a computer-based risk assessment system lwhich will analyse risks based on an extensive audit which examines 15 key areas of business.
The areas targeted by Beckett's risk analysis system include: financial protection, credit management, cash, white collar crime, premises management, building maintenance, vehicle management, IT security, and environmental management.
This system has been developed and field tested with a large number of firms and is endorsed by one of the top five insurers in the UK.
