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Managing for the unexpected: The key elements of an effective risk management policy

Most companies that provide administrative support think risk management deals only with workers’ compensation insurance. While that is certainly a major function of risk management, we believe risk management protection refers to a company’s ability to manage for the unexpected. Large businesses have to manage for the unexpected, and by doing so can move toward their business objectives for financial stability. For that reason, we classify risk management for large organizations in three categories:

  • Workers’ Compensation Management
  • A company’s ability to remain compliant
  • Managing your reputation as opposed to managing a crisis

Has your company considered the costs associated with workers’ compensation?

The ultimate cost of workers’ compensation insurance is determined on an annual basis. It is directly related to the amount of annual claims your company submits, and is then adjusted positively or negatively based on the previous years. Workers’ compensation is relatively manageable, especially for companies that have the mindset to effectively manage costs. At XcelHR, we have that mindset. Our risk management experts can manage or assist in the management of your policy, and we improve your financial stability by focusing on some of these key workers’ compensation factors:

  • Our risk management specialists shop around for better rates.
  • They find opportunities for companies to pool risk with others in order to reduce rates.
  • They modify annual plans to ensure your plan best fits your company’s needs.

Staying compliant is the key to reducing exposure to liability

The easiest way to describe the last decade of American regulation reform is to say that regulation has dramatically increased. Nowadays, regulation plays a role in almost every facet of your business and will continue to play an increasing role as the regulatory environment continues to grow. More specifically, the Affordable Care Act alone, will make managing compliance an issue for all large businesses. If you do not have a comprehensive understanding of this policy, or regulatory reform in general, then you are increasing your exposure to liability and mismanaging your company’s risk.

Look to the chart below for a more comprehensive look at the state of today’s regulatory environment:

Compliance has evolved over the years

The chart above is only a portion of the compliance regulations that companies face. Failing to meet any of the standards listed above dramatically increases your exposure to fines and litigation that can devastate companies. At XcelHR, we provide all companies with human resources and compliance professionals that manage the county, state, and federal laws that guide regulations specific to those companies.

The growing regulatory environment makes compliance a more difficult goal to attain. Employers are being forced to manage regulatory changes on the fly, and more often than not, they fail to manage it properly. A botched risk management policy that results in non-compliance shouts LIABILITY. We know ACA. We know compliance. We know how to manage your exposure to liability.

Risk management: Compliance management impacts a company’s reputation management

In an economic era when a company’s market value is tied to intangible assets like goodwill, brand awareness, and intellectual capital, a company becomes vulnerable to their reputation. Many companies fail to adequately manage their reputation and instead manage the crisis. Compliance neglect that results in litigation has the potential to become newsworthy, and could become a catalyst for reputation damage.

While many companies neglect the key elements of compliance, effective companies that manage their exposure to risk understand the relationship between compliance and reputation. Don’t get caught in the limelight due to preventable compliance issues. Manage your exposure to liability and compliance policies, so your company doesn’t have to deal with reputation damages.

The XcelHR Value

Risk management should not be an afterthought. Risk and compliance are manageable problems that our team of human resources and risk management experts can help you with. It’s never too late to optimize your workers’ compensation program’s value and begin managing compliance. We help companies achieve stronger financial results, by helping them manage their risk. Take advantage of these benefits:

  • Risk Management Software: Run workers’ compensation reports, document compliance practices, and access complete employee records at any time with our comprehensive risk management software.
  • Workers’ Compensation Management: We will provide you with the right policy for your annual needs.
  • Risk Audit: Identify the areas where your company needs improvement.
  • Expert Advice: Get the guidance you need to fix your risk management strategy.
  • Compliance Coverage: Identify and correct HR issues, ACA non-compliance, and other employment related practices.