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Published on: Allgemein

Claims, consequences and domino effect

Why good claims management is important and what can be learn from mistakes.

Natural catastrophes, fires or machine breakdowns. If a company comes to a standstill or entire shifts in industrial plants are down, the damage can quickly run into millions.

Claims management: Fast response is the key
The time during which work cannot be done often results in higher costs than the property damage itself. That‘s why it‘s important to get the extraordinary situation under control as quickly as possible. In an extreme situation in which you are personally involved, this is not easy at all. External experts can help as claims managers to maintain an overview, because for them such exceptional situations are routine.

risk-on-mind® professionals maintain an overview in exceptional situations
The experienced experts from risk on mind® will find the cause, analyze it in detail, track down similar situations or hazards to prevent the incident in the future, and take over the coordination of the necessary communication with external partners and stakeholders like for example insurance companies. In this way, they ensure that an operation gets back to an improved „pre-loss status“ as quickly as possible. After all, time really is money, especially in the case of a claim. If the right action is taken in good time, the extent of the damage
can be significantly reduced.

Fires are the most often cause of distress for companies
Open light or fire, lightning strikes, electrical power or heating equipment - a fire can easily occur in a facility. The probability of this happening is statistically low, but if something does happen and appropriate preventive measures have not been taken, the claim can be huge. One example: the most expensive fire claim in Austria‘s industrial plants in recent years amounted to an unbelievable 120 million euros. This loss was almost twice as high as the average loss of all industrial fires in a year.

Digitalization can support claims management
If one element in a closely networked and synchronized production chain fails, the next elements will also fall - just like in a domino. Digitization can help prevent loss chains, identify potential hazards, track down the causes of damage and reduce or even eliminate them. Those who use digital systems (e.g., rismo®) to ensure that no potential operational risk is overlooked and to have an up-to-date overview of all hazards at any time can bring many dominoes from the entire row into safe distances so that the entire corporate structure does not collapse in the case of a claim.

Magic word: BCM
Prevention and protection concepts help to reduce risks or prevent damage from the outset and minimize consequential effects. This not only reduces the damage balance, but also protects the business from production downtime and
loss of capital and reputation.

The magic word for protecting a company is BCM: Business continuity management stands for a system of strategies and measures to reduce risk potentials and prevent significant business interruptions (e.g., due to fire, natural catastrophe, cyber-attack or pandemic) and keep their effects as low as possible. In doing so, it is essential to perform a comprehensive risk analysis first and then create a business continuity plan (BCP), a guide on how to continue day-to-day business or production during a loss, incident, crisis or other abnormal conditions.

After all, only analyzed risks can be managed accordingly. And it is possible to pay attention in advance to what will be necessary in case of a loss! This way, potential hazards are reduced and consequential damage and long interruptions to operations are minimized on time.

Numbers, data and facts