Friday the 13th is notorious for being an unlucky day. Numerous folklore tales attempt to explain the day’s superstitious reputation and evade its misfortune. So how can you protect your building from the possible preys of this unlucky day?
Whether or not you are superstitious, preparing for things to go wrong on any given day of the year is a good business strategy.
Kathy Nickerson is the Senior Vice President of Robert M. Currey & Associates, an outsourced risk management consulting firm in Boston. She sees a growing focus on risk management: “Terrorist and natural events have opened the eyes of many property owners and investors. They said, ‘Wait a minute, if all those things are happening out there to others, how prepared are we to withstand a loss of that nature?'”
What’s Lurking in Your Processes?
The first place to start with a risk management plan is to evaluate the plans and procedures you already have in place.
- Who’s responsible for creating our risk management plan – an internal team or outside contract workers?
- Are you relying on insurance brokers or carriers?
- How do you know you are doing the right thing?
- How do you know you are properly insured?
As discussed in “Protecting Your Ass(et): Why Risk Management Needs to Be at the Top of Your To-Do List,” your main goal needs to be making sure that you understand everything (OK I’ll make an exception for quantum physics) and that everything is covered (no open toed shoes?). You do not want to risk loss because someone wasn’t paying attention.
Once you make sure that you have all your practices in place, you need to pick an area to focus on. In the Prepared Buildings Webinar, Kathy Nickerson discusses how risk management covers a large area, so for real estate, the first area of focus would most likely be protecting your physical assets.
In order to protect your physical assets, you need to assess and review the current condition of your properties and physical assets. Better check to make sure it’s not a Leaky Friday!
Beyond the Brick and Mortar
In addition to protecting your physical assets, here are a few other steps you can take in preparing your risk management plan:
1. Review Current Contracts – General contractors, vendors, tenants, loans, and so on are all part of your risk management program that you need to make sure you protect as well.
2. Look at Building History when Acquiring Property – Knowing previous problems or loss can be vital to your risk management plan.
3. Make Sure People are Protected – Emergency procedures should be tested and communications with the authorities, as well as broadcast messaging should be in place.
With so many areas to address, Risk Management can be an overwhelming undertaking. Fortunately, technology has become an easier means of creating and executing a risk management plan. And in case a Freaky Friday event happens, just remember – it’s almost the weekend!
See how Building Engines Risk Management Program can help you reduce risk exposure, safeguard occupants and staff, and ultimately reduce the expense associated with insuring your portfolio against liability.