'Groundhog Day' a Lesson in Risk Management

Trustedchoice.com Author Icon Written by Trusted Choice
Trustedchoice.com Author Icon
Written by Trusted Choice

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No, we’re not suggesting that Punxsutawney Phil has swapped his expertise in meteorology for a new career in loss prevention. As far as we know, Phil remains happily devoted to his annual February 2 prediction ritual, where, even after 121 years, his view (or not) of his shadow amazingly continues to predict the remaining days of winter.

Now consider how his change of focus from hedonism to personal improvement parallels the potential created by step five of the classic risk management process as defined by the American Institute for Charter Property Casualty Underwriters:

  1. Identify and analyze loss exposures.
  2. Examine risk management alternatives.
  3. Select among alternatives.
  4. Implement chosen alternatives and techniques.
  5. Monitor and improve the risk management program.

Many individuals and firms actively pursue the first four steps, but neglect step five. Note that only embracing fully the repetition inherent in step five will assure continued success. Without constant monitoring with a focus on potential improvement, even a state-of-the-art risk management solution may ultimately fade in effectiveness and applicability. Insurance coverages change, tools and techniques evolve, once-major issues become minor, and once-minor threats become critical. Effective risk management is never “once and done.”

So take a tip from "Groundhog Day"! Repetition is only bad if you learn nothing or only aspire to the easy out. With a focus upon continuous updating and improvement, you may soon join Phil in achieving success beyond your wildest dreams!

Although Your Trusted Choice® agent hopes it won’t take you 10 years!

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