What is ERM and Why is it Beneficial?

For more than 25 years, Scott Sink has served as the senior executive vice president of McGriff, Seibels & Williams, Inc., in Birmingham, Alabama. In this capacity, Scott Sink of Birmingham and his colleagues provide insurance brokerage and risk management services to gas and electric utility companies around the United States.

Due to the inherent volatility of the energy and utility sector, many companies operating in this field can benefit from enterprise-wide risk management (ERM). A comprehensive process, ERM involves identifying, assessing, and preparing for any figurative and physical issues that may negatively impact a business’s operations and, thus, affect its ability to achieve its objectives.

In the past, managing this risk has largely been done by obtaining different types of insurance, such as property insurance and liability insurance. However, ERM plans address a larger number of potential dangers and obstacles than what insurance policies are capable of. This includes supply chain, expansion, and technology obstacles.

Businesses in the utility sector benefit from ERM programs since they ensure that risk mitigation and prevention plans are effective, in addition to increasing awareness of risk events. This knowledge is integrated into the daily operations of management and employees, which allows the plan to help management effectively deal with uncertainty in the market.

About McGriff, Seibels & Williams' Loss Prevention Services

Birmingham resident Scott Sink is an experienced risk solutions executive who has served as a senior executive vice president at McGriff, Seibels & Williams, Inc. for nearly twenty years. As an executive of the Birmingham-based firm, Scott Sink provides risk management and insurance brokerage services to the utility industry.

McGriff, Seibels & Williams is one of the largest insurance brokerage firms in the United States, with eleven locations across the country. The firm, which was founded over one hundred years ago, offers an array of specialized services that include claims management, risk financing, captive feasibility, and loss prevention among others.

The firm's loss prevention services are characterized by sophisticated risk control programs and safety engineering enhancements that help clients avoid costly claims. Risk control programs, which are customized for each client, are distinguished by risk control professionals that provide rapid response and support for major loss situations. Moreover, The firm provides internet safety training to reach large numbers of employees in addition to regulatory compliance assistance at the state and federal levels.

For additional information on loss prevention services at McGriff, Seibels & Williams, visit www.mcgriff.com.

Risk Management - Likelihood

In 1994, Scott Sink of Birmingham, Alabama, started working at McGriff Seibels and Williams, which provides insurance brokerage and risk management services for gas and electric utility companies. As senior executive vice president of the Birmingham-headquartered company, Scott Sink often has to assess the likelihood of things going wrong.

Likelihood is one of two main metrics that risk managers use to determine priorities. Generally, likelihood can be split into three main categories: low, medium, and high.

Risks that belong in the low-likelihood bracket are acceptable and do not need special management. They do not need to be addressed first. Risks that fall into the medium-likelihood category should be monitored, but are unlikely to receive priority status. Risks that have the high-likelihood label need immediate attention and a dedicated risk management plan.

To get the full picture and determine priorities, a risk manager also has to take the impact of each risk into account. That means that risks with significant impact and high probability get the highest-priority status and most extensive management.