It’s Time to Get Proactive About Risk Management

No one wants to spend their time thinking about hypothetical scenarios regarding adverse events. Often, Australians adopt a nonchalant “she’ll be right” attitude, crossing their fingers in the hope that accidents, crime, or extreme weather won’t disrupt their businesses and lives. Nevertheless, accidents do occur, and without adequate preparation, they can bring about considerable stress, injuries, disruptions, and financial setbacks.

While insurance helps provide a safety net for financial protection in the face of unfortunate events, it’s equally vital to take proactive measures to mitigate the risk of such events occurring in the first place.

Why is it important to be proactive in reducing risk?

Apart from the obvious advantages of enhanced safety and the continuity of business operations, being proactive with risk management can also position you favourably in the realm of insurance coverage, a critical factor in today’s tough insurance market environment.

The increasing frequency and severity of factors such as climate change, severe weather events and even cybercrime, have highlighted the need to focus on prevention and protection from these events, rather than simply covering the financial risks. With the increase in risk factors comes a reduction in appetite from insurers, prompting many of them to tighten up their coverage, increase premiums, and sometimes pull coverage altogether. 

Being proactive in your approach to risk management helps to position you favourably in the eyes of the insurer — with the added benefit of reducing the risk of having to deal with the fallout that comes with adverse events. 

Essentially, if you’re not thinking ahead and being proactive, you’re more likely to have multiple insurance claims pop up. This results in harder-to-place, more expensive insurance.

Understanding and addressing risk factors 

In the pursuit of comprehensive risk management, it is essential to engage in a proactive approach aimed at understanding and addressing risk factors. This involves a diligent effort to enhance key areas where risk poses a concern, particularly in areas that are already known to be problematic. 

It’s likely you already have an area of concern that needs some attention. For example, you might be aware that the physical security of your property or your cyber security is subpar, or you might even have a pesky roof leak that you’ve been putting off addressing. Risk management starts with addressing these areas of concern. Keep in mind that small issues today can quickly snowball and grow. An occasional roof leak can turn into an occupational hazard very fast if the appropriate maintenance is not undertaken. 

Gaining a deeper understanding of risk through education, whether by enrolling in training courses or seeking advice from seasoned professionals, is a crucial step towards making informed decisions and building resilience against unforeseen challenges. By actively investing in both knowledge and risk mitigation strategies, individuals and organisations can better navigate the complex landscape of uncertainties and emerge stronger and more secure.

While addressing risk factors will likely involve an investment — for example upgrading your fire suppression system, overhauling cybersecurity, or supplementary safety training for employees — the investment comes with added peace of mind. Increasing the safety of your employees, yourself and your business is always an investment worth making. 

Actionable tips to reduce risk 

Depending on the industry you’re in and your physical location, there are various steps you can take to reduce risks. Below is a list of steps you might like to consider. 

Regular inspections

Scheduling annual inspections is a proactive measure that can significantly reduce risk in various areas of your commercial property. These inspections should cover crucial safety components like smoke alarms, old wiring, ageing roofs, and plumbing systems. Outdated or faulty wiring can pose fire hazards, while old roofs may be more prone to leaks and structural issues. Similarly, outdated plumbing and flexi hoses can lead to water damage or even flooding if left unattended. By conducting regular inspections and addressing any issues promptly, you not only enhance safety but also extend the lifespan of these critical systems, ultimately resulting in savings. 


Tidying up and cleaning your working space regularly is another practical strategy to mitigate risk. Over time, debris accumulation can lead to a host of problems, from obstructing ventilation systems to creating trip hazards. Regular cleaning not only helps to eliminate debris and dust but also minimises wear and tear on your property and equipment. By keeping your environment clean and well-maintained, you reduce the likelihood of accidents and the need for costly repairs. This approach not only enhances safety but also contributes to a healthier and more comfortable working space.


Effective maintenance of work equipment plays a pivotal role in mitigating risks within a workplace. Regular and thorough equipment maintenance not only ensures the longevity and optimal performance of machinery but also minimises the chances of unexpected breakdowns and accidents. By adhering to a scheduled maintenance regimen, potential issues are identified and rectified early, reducing the likelihood of costly repairs or replacements. Moreover, well-maintained equipment operates more efficiently, enhancing productivity and reducing downtime. This not only safeguards the health and safety of employees by preventing equipment-related accidents but also strengthens overall operational reliability, contributing to a smoother and more secure work environment. Maintenance acts as a proactive risk management strategy that preserves both human well-being and the bottom line.

Disaster planning

Depending on where you are located, you may be at risk of experiencing severe weather events, such as cyclones, flooding, or bushfires. Preparedness is key; this includes creating a comprehensive disaster plan that outlines evacuation routes and emergency contacts. Reinforcing the structural integrity of buildings through retrofitting and secure fastenings can mitigate damage during weather events. Regular maintenance of vegetation and firebreaks can reduce the risk of wildfires, while flood protection systems and levees can help control water-related disasters. Staying informed through early warning systems and monitoring weather forecasts is essential to enable timely action. Education and community engagement on disaster preparedness and response further strengthen resilience, ultimately minimising the devastating effects of natural disasters on both property and human lives.

Business Continuity Planning

Develop a business continuity plan that outlines how your business will respond to unexpected disruptions, such as natural disasters, technological failures, or a public health crisis. This plan should include strategies for remote work, data backup, and communication with employees and customers.

Employee Training and Safety 

Employee accidents and injuries can lead to financial and legal liabilities. Prioritise employee training, safety, and compliance with relevant labour laws. Establish clear safety protocols and encourage a safety-conscious culture within your organisation.

To highlight the importance of training in the context of insurance, consider this scenario; An employee has not been given appropriate training on how to operate certain machinery. Due to the lack of experience and knowledge, the employee is involved in minor accidents every few months. While insurance may cover the bulk of the expenses, eventually, the insurance premiums will increase, and the business runs the risk of not being able to secure insurance at all. Reducing risks has a direct impact on your likelihood of securing insurance. 

How to provide comprehensive information to your insurer

The benefits of providing comprehensive information to your insurer extend far beyond just fulfilling a procedural requirement. It’s a proactive approach that can lead to significant advantages for both individuals and businesses. Below are steps you can take to ensure your insurer has a comprehensive overview of your unique situation. 

Collating All Data and Information

By meticulously gathering and presenting all relevant data and information on your assets and business to your insurer, you create a comprehensive and accurate profile of your needs, risk factors and the assets your business owns. This allows the insurer to tailor policies that better align with your specific circumstances, potentially resulting in more cost-effective coverage and more precise protection. It can also help to speed up the claims process as there will already be a clear picture in regard to the value of assets that have sustained damage. 

Seek Guidance from Risk Specialists

Consulting with risk specialists or insurance experts can provide invaluable insights into potential vulnerabilities and areas that require additional coverage. Their expertise can help you identify and prioritise risks, ensuring that you obtain the most suitable insurance products to mitigate these risks effectively.

Face-to-Face Meetings with Insurance Specialists

At Hunter Broking, we like to do things a little differently to ensure no stone is left unturned regarding insurance risk management. Where possible, we like to meet our clients in their place of business. This approach offers a personalised and holistic method to risk assessment. Being able to discuss your concerns and requirements face to face allows us to gain a deeper understanding of your situation, and also lets us look over your property through the lens of an insurance expert. We notice risks that you may not have considered. Our approach leads to much more comprehensive insurance risk management. 

Visual Documentation

Sharing photographs or visual documentation of your property or assets can be a valuable addition to your insurance portfolio. These visuals offer insurers a clear view of the insured items, aiding in accurate valuation and assessment of risk. Visual evidence can be particularly useful in the event of a claim, helping to expedite the claims process and reduce the likelihood of disputes.

Get proactive today 

Taking a proactive approach to risk management is not only wise but essential for businesses. The reluctance to address risk factors can lead to significant heartache when these events do occur. While insurance serves as a financial safety net, it’s equally crucial to focus on risk reduction and prevention. The increasing severity of global risks, coupled with a tightening insurance market, highlights the need to minimise vulnerabilities and position yourself favourably in the eyes of insurers.

By taking the steps highlighted above, businesses can better protect their assets, reduce the likelihood of insurance claims, and secure a more resilient and secure future.

If you’d like to chat further about your business risk exposure, please do not hesitate to get in contact with us today

(07) 3279 6592
[email protected]


The information provided by Hunter Broking Group Pty Ltd on this website is for general information purposes only, and it is not a substitute for professional advice. You should always consider the PDS/Policy wording before making a decision. Coverage may differ based on specific clauses in individual policies. Refer to the FSG on our website or by requesting a copy for our services and remuneration details.

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