Sir Mo Farah can run 5km in under 13 minutes – that’s why he’s a knight of the realm. Should you be happy with running 5km in 25 or 30 minutes? It depends on who you’re competing against and your personal goals and ambitions.
In business, you’re up against the best. Competing firms will use any advantage they have to grab market share, improve their pricing and push you out of the market. If you can’t match them, you’ll lose out.
Many companies put a focus on risk management and loss prevention. They realise the importance of minimising losses and maximising operational output. But how many benchmark themselves against their own past performance? How many seek only to improve on their own personal best?
Unless you’re going toe-to-toe with the market’s top performers, you’re always going to be going backwards.
Overly insular benchmarking is at the heart of why many companies in the food and agri sector continue to experience costly, debilitating losses despite having improving risk management processes and loss prevention strategies.
Yes, they’re getting better – but only when judged against their own historic performance – not when compared to the best-in-class.
The challenge, therefore, is to acquire sector-specific information on the risks you face and the most up-to-date prevention strategies and techniques to mitigate them effectively.
You can do this by collaborating more closely with your insurance broker and insurance carrier.
Using technology to best effect
But how do food and agri companies with hundreds of sites, in multiple territories, create a positive and consistent loss prevention culture?
It’s impractical to complete a physical risk survey at every location, but using technology you can gather the data required and push out the positive messaging needed to improve standards.
A company might have 300 sites, for example, but it’s not financially viable to visit all of them. But if you don’t gather risk information or measure risk performance and culture at all of your locations, how can you create a consistent corporate approach that delivers positive results for the company as a whole?
Smaller sites, in difficult-to-reach locations, might fall off the radar, but they can – and often do – experience significate losses leading to claims that run to hundreds of thousands of pounds.
Online loss prevention tools enable you to survey staff at each and every site. You can gather information on loss prevention processes, attitudes and performance.
Collating company-wide information will give you a better understanding of your business and enable you to identify trends that are not location specific. A risk management report that details your performance at this level, enables you to design a more targeted learning programme and to produce more specific loss prevention guidance.
Knowledge is power
The online world also lets you distribute the knowledge you’ve learned to everyone in your company – no matter where they’re located.
Instead of relying purely on face-to-face delivery of your messages and loss prevention measures, you can use e-learning programmes to create consistency in process, corporate language and compliance. In short, you can begin to build the loss prevention culture you want.
Digital solutions should not replace physical surveys to your geographical locations. But they can help you fill the gaps, get a much deeper understanding of your business and create a platform, for consistency.
Loss prevention takeaways:
- Benchmark against the best, not your company’s past performance
- Use digital tools to gather information and push out consistent learning
- Don’t ignore small value sites – they can experience large value losses
Thank you to Neil Strickland from RSA Risk Consulting, for his contributions to this article.
For further information please contact Simon Lusher, Head of Food and Agri Practice on +44 (0)20 7459 5550 or email Simon_Lusher@jltgroup.com.
This blog is compiled for the benefit of clients and prospective clients of companies of the JLT group of companies (“JLT”). It is not legal advice and is intended only to highlight general issues relating to its subject matter; it does not necessarily deal with every aspect of the topic. Views and opinions expressed in this document are those of JLT unless specifically stated otherwise. Whilst every effort has been made to ensure the accuracy of the content of this document, no JLT entity accepts any responsibility for any error, or omission or deficiency. If you intend to take any action or make any decision on the basis of the content of this document, you should first seek specific professional advice. The information contained within this document may not be reproduced and nothing herein shall be construed as conferring to you by implication or otherwise any licence or right to use any JLT intellectual property.
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