Critical Budget Action Items for 2022
It’s almost time for your 2022 yearly planning. Of course, you’re budgeting for your risk management program, but don’t simply focus on your insurance prices and premiums.
There are more significant costs you should consider in your forecasts.
Beyond premiums and deductibles, you’ll find the hidden costs of claims, also known as Financial Leakage, showing up as business disruption, reputational damage, and the operational and strategic impacts you incur when you experience a sizeable claim event.
Your insurance carrier does NOT pay these unfunded expenses. Your organization absorbs them, and they reduce your margins (or surplus goals for non-profits).
Let’s get ahead of the game by assessing the true cost of your risk management program. Here’s what you should do right now:
- Get a current and accurate evaluation of your Financial Leakage. This is a finite, quantifiable, and controllable expense that prevents you from maximizing your ultimate profit potential.
- Assess the damage Financial Leakage is causing to your sales and profits. With the proper analytic tools, our firm can assess your Financial Leakage AND create a plan to help you reduce its impact.
- Develop a plan to attack your Financial Leakage to improve your bottom line. It’s possible to recapture a significant portion of your Financial Leakage with a solid risk reduction and mitigation strategy. We can help you with this too.
So, if you’re committed to maximizing your business performance in 2022, we should talk right away. To start the process, our firm can provide you with a no-obligation Financial Leakage Report™ on your existing cost structure.
Best of all, we’ll develop a data-driven plan to help you measure and recapture these controllable costs to improve your business performance in 2022 and beyond.
“If you can’t measure it, you can’t improve it.” – Lord Kelvin