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Minimize Risk and Protect Your Business
Risk management is one of those things that most business owners think they have in place, but truly don’t have a plan for. A risk management plan is an extensive plan detailing the likelihood of potential risks, how to minimize those specific risks, and what to do in the event that any one of those risks materialize into a real event. A risk management plan is absolutely imperative to keep your business afloat, even in the worst possible scenarios. The worst thing you can do as a restaurant business owner is be unprepared – so use this guide to create a solid risk management plan.
Step 1: Identify Potential Risks
The first step in creating a risk management plan is to identify all possible risks. Think about the day-to-day things that could occur in any restaurant, as well as outside events that may impact business like weather, for example. Make a long list, and speak with other professionals to identify if there are any items you may be missing.
Step 2: Under Each Risk, Identify What Would Happen
Next, under each event or risk on your list, identify exactly what would happen should this event materialize. For example, someone has a food allergy and eats the food they are allergic to while dining in your restaurant. If this happened, an ambulance would be called and your restaurant would be at risk for a lawsuit. Other risks may be out of your control, such as a power outage. In this event, your business would be closed and lose out on revenue. Be as detailed as possible in this section to ensure all bases are covered.
Step 3: How Can Each Risk be Avoided?
This section is key. Under each risk outlined, discuss how each risk can be avoided if at all possible. For our food allergy scenario, you could make sure your wait staff and kitchen staff are knowledgeable about food allergies and trained in knowing which foods contain the most common allergens. For our power outage risk, you could invest in a generator to take over in the case of an outage so that business is not interrupted.
Step 4: What are the Steps for Handling Each Risk?
Unfortunately, sometimes these risks are out of our control. In these circumstances, you need to outline exactly what the protocol is for managing the risk. For example, how will your restaurant respond to a natural disaster? What are the steps in place if a piece of kitchen equipment breaks during the dinner rush? What if there is a medical emergency inside of your restaurant? This is where you may want to speak with a professional to help you outline exactly how your restaurant can prepare for these unfortunate situations.
Step 5: Share Plan with all Relevant Stakeholders
Don’t keep your risk management plan all to yourself! In order to be effective, all key stakeholders in your restaurant need to have copies of the risk management plan and have read and understood it. Key stakeholders include your entire staff, investors, and anyone else you feel needs to know how to handle risk.
Step 6: Secure Risk Management Coverage
Lastly, you need to take a final precaution in managing your restaurant’s risk. RPA offers Risk Management Coverage to restaurants across America. Risk management coverage from RPA allows our professionals to create an entire risk management plan for your business, while training all key stakeholders to minimize risk. Businesses that secure risk management coverage are more prepared and quick to respond in high-stakes situations. Our team will also do a coverage analysis to determine the type of insurance coverage your business needs. Restaurant insurance coverage designed specifically for your business is key in not overpaying for coverage while ensuring you are covered for all potential risks.
Contact the Risk Management Professionals at RPA Today
If you are interested in protecting your restaurant business from all potential risks, contact RPA today. As insurance professionals focused solely on the restaurant industry, we are committed to working with each restaurant to design a plan and coverage that works for them. Contact us today to discuss your options and get started.