JB Risk | Services | Risk management and insurance consultants

One lesson learned from 2008 is that taking an “it won’t happen to us” mentality can be costly, disruptive and at worst
catastrophic to even the most unsuspecting organizations. Many senior executives that thought and/or claimed to be actively
practicing risk management at all levels of their organization quickly realized that managing risk has nothing to do with size and
everything to do with strategy and stability.

By identifying and proactively addressing risk and opportunities, your organization can protect and create value for itself and its
stakeholders, including shareholders, employees, customers, regulators and society overall. In fact, a risk management report
titled 'Risk Management in Canada: Moving Beyond Assessment' by Ernst & Young LLP documented the following findings:

•

Investors are willing to pay a premium for companies with strong plans

in place

and

learned

that half

of the investors surveyed have walked away from an investment due to lack of

good risk management

and 30% have pushed for changes in senior management to ensure

the job was done

right.

• 85% of executives identified clear ownership of risk as the most important determinant of

success in managing risk, but

only 2%

of senior management

believed their companies

were identifying ownership well.

• 78% of management said understanding risk across the organization is critical, but only 11%

said they have actually achieved this understanding, and

more than 1 in 3 said some key

risks are not

being actively managed at all.

• 71% identified risk management as important to their company’s long-term growth strategy

and 75%

said it is important in building and enhancing their reputations;

only 49% linked

risk management to

business strategy.

It is evident that many executives are capable of identifying organizational risks, but many struggle to take ownership of those risks
and manage them successfully. From a decision standpoint the benefits of including risk management as a critical component of
your business strategy far exceed the costs and include, but are not limited to the following:

•

Save

resources:

Time, assets, income, property and people;

• Protect

the

reputation and public image

of your organization;

• Prevent

reduce

legal liability

and increase

the stability of operations;

•

Ensures

auditing and accounting

standards

are being met

;

• Fulfill

corporate governance and public accountability

expectations;

• Satisf

ies

requirements of

regulators and debt rating agencies

;

•

Strengthens

response strategy

to difficult

circumstances;

• Assis

in clearly defining

risk and insurance

needs;

At a time when investor and public confidence has been severely shaken, there is no better opportunity to separate your
organization from the competition by conveying to stakeholders that you do not view risk management as a constraint to profits.
Contact JB Risk to learn how to actively manage risk by utilizing your internal resources and successfully implement a program
that fits your business strategy and culture. Our recommendations and solutions will allow you to respond quickly to difficult
situations, but also tends to have the added benefit of reducing insurance premiums, claims costs and the overall “Total Cost of
Risk” to your organization.

Contact us to discuss your organization's current situation.

Professional, independent, outsourced risk management and insurance solutions.

www.jbrisk.ca

RISK MANAGEMENT RESOLUTIONS FOR 2009

Grant Robinson
Grant Robinson, CCIB, CRM
Managing Partner
Phone: 403-298-4314
Email: grobinson@jbrisk.ca

Katie Ellwood
Katie Ellwood, BComm.
Risk Management Associate
Phone: 403-213-6712
Email: kellwood@jbrisk.ca