Risk Management Strategies
Environmental liability can be addressed by applying established risk management strategies that match business tolerance and deal structures. Applied risk management strategies can allow for favorable business financing, redevelopment of impaired real estate, lower insurance costs for operating businesses and contractors, and overall provide Loss Control for your business.
- Avoid
- Retain
- Manage
- Transfer
Avoid Risk
Avoid identified loss by not owning a particular liability or choosing not to engage in a certain activity or walk away from a transaction or business opportunity if the risk level does not match your tolerance level.
Retain Risk
Pay for anticipated and unanticipated losses as they arise. The risk of a loss remains within the business or real property.
Manage Risk
Apply techniques to measure and eliminate the severity of a loss. Techniques for real estate often include direct remediation, deed restrictions, and engineering controls. Techniques for operating businesses can include Loss Control and training programs.
Transfer Risk
Applied to transfer the uncertainty of a loss away from a business or real property. Risk Transfer removes a level of potential risk from the business to a third party, such as an insurance company or a prior responsible party.