Proper risk management is a vital part of business. Having a consistent process in place for risk management saves the company time, and money! Through risk management allows you to decrease the likelihood of a bad hire, doing business with a bad vendor, among several other aspects. Risk management is an important process of any company. Where do you start though?
Having Consistent Policies in Place
If you run a credit and criminal check on one candidate, then do the same for every new candidate. Ensure that the prospect signs off to allow for the credit and criminal check. Have the same criteria for all prospects. This will keep your nose clean as a business owner! No one can cry foul, if the same procedure is used on everyone. It’s just good business sense.
If you require vendors to have a certain amount of insurance, make sure this applies to all vendors. If they really want to work with you, they will comply.
Developing Deeper Understanding of Policies
If you don’t understand why you have risk management measures in place, you are less likely to use them! You do not run credit checks on prospective employees because you want to dive deep into their personal lives. If a person can not pay their bills on time, will they arrive to work on time, or at all? If a prospective candidate has a criminal record, they are more likely to offend again. You don’t want to risk your business for a criminal. Does the credit report match what they are telling you on the application? The last thing you want to do is hire someone who lied on their application. Have a predetermined acceptable credit and criminal score for the position, so there is no question of fairness.
Let’s say you want to hire a vendor, but he has no liability insurance. If he gets injured on your site, doing work for your company, guess who fronts the bill? That would be your business. You don’t want to take on that risk. Understanding the application of risk management policies will ensure best practices.
At Interactive Services we make risk management easy! Contact us today! Let us save you time and money by taking care of all your risk management and compliance needs!