In 2023, companies in South Africa are expected to continue facing a challenging economic environment characterised by high levels of unemployment, low economic growth and political instability. As a result, businesses are finding it increasingly difficult to operate and maintain profitability. One of the most significant concerns in this climate is the trend that has emerged of clients neglecting their risk management and under-declaring asset values at risk, thereby placing themselves at risk of not being compliant should they suffer a fire, and/or being underinsured, making any chance of a full recovery of their loss impossible.
At the same time, insurance providers are finding themselves under increasing pressure to ensure clients are adequately insured and have implemented effective risk management strategies to mitigate potential risks. By definition, risk management is the process of identifying the likelihood and potential impact of different risks, assessing the effectiveness of existing controls, and identifying new safeguards that may be necessary. This includes prioritising potential risks to an organisation’s business operations and capital, and the coordinated and economical application of safeguards to mitigate or reduce those risks.
Proactive risk management
Effective risk management is not only critical for protecting a company’s assets and ensuring its continued operation, but it also plays a vital role in obtaining insurance. In today’s market, insurance providers are becoming increasingly cautious and selective in the businesses they insure. Without a proactive approach to risk management and a healthy risk management culture within a business, it is unlikely that a client will be able to obtain adequate insurance cover.
In light of this, it is essential for clients to take a proactive approach to risk management, and this is where IUM’s exclusive risk management offerings to clients and their brokers sets IUM apart from the rest of the market. Proactively managing and mitigating risk is part of IUM’s DNA. Born out of IUM’s constant drive to improve the way that insurance is underwritten, IUM employs a sizable team of full-time surveyors, fire engineers and risk analysts, and utilises state-of-the-art equipment and technology to conduct the most comprehensive surveys in the market and assist clients to implement their risk management programs.
Broad service offering
Risk surveying at IUM is a free dedicated resource available to existing and potential IUM clients.
IUM’s risk management team is among the best in the industry, with extensive experience in fire prevention and understanding of applicable legislative requirements. Our surveyors assess and identify high-risk operational processes, determine structural integrity of racking and shelving systems, evaluate panelling in cold storage facilities, and use thermal imaging equipment to detect heat overload. Additionally, each surveyor is a qualified drone pilot, allowing for efficient surveying of hard-to-reach areas.
IUM’s proprietary risk management software allows surveyors to capture data live on site, and to ensure timeous delivery of survey reports to clients. The software also assists clients and brokers to actively manage the risk requirements, through automated reminders. IUM’s risk management team also offers bespoke solutions for complex risk requirements, such as rational design, nationwide installation, project management and maintenance contracts.
IUM, in partnership with qualified quantity surveyors, is well-positioned to assist clients in obtaining accurate insurance replacement valuations in order to update their asset values declared to insurers on commercial and personal property, as well as re-evaluate business interruption time periods.
Ultimately, as social and business environments change, clients have no alternative but to make every effort to ensure that risk management is not neglected, and the business remains compliant and comprehensively insured to provide a satisfactory recovery of an unforeseen loss.