While every profitable endeavor entails risk, very few business owners have a clear sense of which factors pose the most danger to their company.  Failing to acknowledge all these possible risks can certainly leave your company vulnerable.  But is there a point where over-thinking and overcompensating for something unlikely to happen becomes too expensive to justify the purpose?

CHAD TISONIK, CSP, CHCM
Associate Vice President, HNI

Most businesses never consider their Total Cost of Risk as a driver of profit. First, you may not be too sure how to calculate it. Second, the number may not be understandable or worse yet, you may define it as solely your insurance premium. Whatever your understanding may be, it may be a good time to refine your beliefs. Controlling your cost of risk will help make you nimble in your marketplace. Failure to control it will send a shiver through your entire organization.