The Importance of Risk Management
The Advocis Protective Association (APA) is dedicated to not only protecting financial advisors when a claim occurs, but also to providing them with information that can help protect them from claims. By offering topical and relevant risk management education, the APA can help enhance advisors’ professionalism and protect their livelihood.
As a professional advisor you are at risk of claims.
Advisors are focused on what they do best: building their business and providing advice and services that protect their clients and families. All too often, though, advisors don’t pay enough attention to compliance and the best business practices that ensure their safety.
Just as you approach assessing your clients needs against the risks they face in life, so too must you honestly assess the risks you face every day of a claim being brought against you.
Risk management is the process of identifying risks by:
- assessing the probability of risks occurring;
- assessing the impact if the risks occur;
- protecting against the consequences of loss; and
- minimizing the occurrence of perils.
While every practice is unique, all practices face similar risks and have similar needs.
By taking an honest risk management approach to assessing your E & O coverage needs, you will be just as protected as your clients.