Adverse events such as accidents, losses and disasters are always learning opportunities. Neglecting to glean anything positive from adverse events—such as strategies for avoiding them in the future— condemns you to repeat your mistake. It is not enough to realise your organisation’s shortcomings that contributed to the adverse event—you must also learn from them.
For example, after any property damage or loss, your organisation should consider improving the physical standards of security. Or if there was a fire on your premises, you should undertake a thorough review of your fire protection standards, systems and procedures.
Learning from adverse events should extend beyond just the losses involving physical damage to your company. If a worker suffered an injury, research additional actions that could prevent a recurrence.
Taking these preventive measures helps keep your employees safe and your costs down.
After a loss, regulatory bodies may require you to implement preventive actions. Show regulators that you take risk management seriously by identifying risk control improvements and implementing new plans before you are required. Not only does this confirm your dedication to risk management, health and safety, it can also help with the insurance renewal process.
Learning from adverse events convinces everyone—regulators and employees alike—that your organisation looks ahead, not behind.