Why Insurance is NOT Risk Management

“I practice risk management. I buy insurance.”
It’s staggering how many times I hear that phrase and unfortunately it is equivalent to “locking our gate is the only thing I can do to prevent theft of my inventory”
Simply put, insurance is NOT risk management. Insurance is a part of a successful risk management program, but should never be considered to be your entire source of risk management. Just like locking the gate is part of preventing theft, it is by far not the only way to secure the inventory on your lot.
There are five steps to the risk management process and, as a business owner, you subconsciously use these steps every day. Sadly, because many dealership owners are not programmed to consciously think about these five steps, they miss some of these steps when looking at their own business. This article is meant to help you apply the risk management process to your business so you are not left relying solely on insurance to protect all of the hard work you’ve put into your business.
Watch the video above or click here to read the full article: dealerisk.com/...