Even Life Insurance agents need Risk Management

The life insurance association MDRT (million dollar round table), lost 1.0 million dollars after they found an IT manager embezzeled the money over a period of time. The scheme was to use a fraudulent IT systems vendor were big payouts were made under the guise of computer services. The fraudulent vendor split the money with the IT manager and no services were rendered. How does this happen to insurance people who are in the business of protection of others, well it goes back to risk managment. We are all guilty of not really being proactive on risk. we run our businesses as reactive to risk situations or events that are caused by risk. However the answer to reducing the drama in our business lives is to be proactive and use risk managment as a day to day discipline. It may take a while but I see the day that business owners will have risk managment meetings more than they have sales meetings. There is so much money that can be saved by risk prevention or reduction that it could be as an effective profit generator as sales. Until next time be careful out there and know your risks. K

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