5 Tips for Effective Risk Management

In the world of property management, risk management entails two different types of risk: risk to property, and risk to people on that property. Protecting both is a highly important part of every property manager’s job. For that reason, we’ve compiled a list of five helpful risk management tips for property managers.

shutterstock_792785505 Risk Management Tips for Property Managers

  1. Accept Responsibility for Risks — the first step of risk management is accepting your responsibility. If no one decides to be responsible for something, then no one will be looking out for it. Figure out which responsibilities fall under your jurisdiction and which ones you can help advise the responsible parties on. Then, resolve to do your part.
  2. Learn to Identify Risks Before They Happen — a big part of risk management is learning to identify and fix potential problems before they happen. This involves everything, from inspecting homes on a regular basis in order to check for possible future problems, to making sure that residents in the properties you manage have an emergency action plan.
  1. Take Effective Action — find the courses of action that can be taken to get the quickest, most efficient results, and then take them. This will likely require a bit of trial and error on your part. Look back over what kinds of action you have taken, and whether or not those actions resulted in a quick fix or ended with you uselessly banging your head against the wall. Figure out why some methods worked and others didn’t, and then stick with the ones that worked.
  1. Know the Difference Between Thriftiness and Stinginess — it’s easy to spend far too much time, money, and resources on being overprotective. Still, saving money is not a good excuse for skimping on necessary actions and repairs. Take the time to come to a proper decision on what cost-cutting measures are good ways to save money, and which ones are choosing penny pinching over proper safety.
  1. Get the Proper Amount of Insurance — no matter how well you follow the first four steps, you can’t prevent every accident or disaster from happening. Make sure to have enough insurance to cover damages.

An Ongoing Task

Risk management isn’t something that you do once and then forget about. It’s an ongoing process. As you work longer at it, you’ll find your own tips and tricks to making it easier, and better protecting residents and property.

Click here to get more information on how an AssociationVoice website can be a part of your risk management.

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