Risk Control

What Does Risk Control Mean?

Risk control involves taking steps to avoid or minimize potential losses in a business. This process typically follows formal assessments aimed at identifying risks within a workplace. The methods used for risk control often lead to changes in the company’s operations.

Insuranceopedia Explains Risk Control

Every business endeavor faces risks, such as the threat of bankruptcy. Business owners are advised to prepare for these risks or, preferably, reduce or avoid them altogether.

One method of risk control is purchasing commercial insurance policies. General liability insurance is one common piece of that approach, since it pays for third-party injury and property damage claims that internal safety measures don’t catch. Another approach involves assessing potential risks and implementing control measures to mitigate them. For example, if an assessor identifies a piece of unsafe machinery, management can control the associated risks by repairing or replacing it to ensure the safety of employees who use it. Even with good safety practices, on-the-job injuries still happen, which is why most states require employers to carry workers compensation insurance to cover medical bills and lost wages.