A thorough risk assessment points businesses into the appropriate direction for action and control of their liabilities. While programs focused on pollution prevention, waste minimization and disposal practices certainly help meet compliance requirements, they also save money. Tillinghast-Towers Perrin offers proof. That cost is down 11 percent from 1994 and 22 percent over the last three years. According to RIMS, the decline reflects a more competitive insurance market, heightened safety measures and more aggressive claims management.
Prevention is certainly less than the cost of an insurance claim.
Therefore, companies that consistently stress safety training as part of their corporate culture are rewarded by a reduction in risk, a reduction which in turn is helping them control insurance costs. Comprehensive environmental health and safety training for employees, regular environmental assessment and auditing procedures and insurance programs are an integral part of the risk management process too. Mere compliance simply does not eliminate all risk. Accordingly businesses need to continuously monitor, manage potential exposures and seek ways to improve upon the risk management process. Accidents do happen Certainly, the overall goal of an effective integrated environmental risk management plan is to prevent incidents from ever occurring.