The Summer of Living Dangerously (But Safely) - California Land ...
The Summer of Living Dangerously (But Safely) - California Land ...
The Summer of Living Dangerously (But Safely) - California Land ...
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<strong>Summer</strong> 2010<br />
By: Richard Hertzberg, CPCU, ARM, Vista International Insurance Brokers<br />
RISK MANAGEMENT FOR LAND SURVEYORS<br />
Real Risk Management Can Be Surreal<br />
So this year we are witnessing the failure <strong>of</strong> risk management<br />
and realize there are events that man, his science and his government<br />
cannot control. Recession, the business cycle, natural and<br />
man-made disasters are examples. Over the long haul, people are<br />
basically lucky because they usually don’t have to deal with such<br />
things very <strong>of</strong>ten, especially all at once. <strong>But</strong> it can happen, it doesn’t<br />
make sense and there are things that just can’t be prevented.<br />
See What’s Wrong<br />
We have bank failures, the housing crisis, foreclosures, phony<br />
collateral debt obligations, unemployment, world-wide recession,<br />
earthquakes, coal mine explosions and the giant Gulf oil spill.<br />
What’s going wrong? Is it Armageddon? Will we all survive?<br />
Whose fault is it? On the internet there’s a picture <strong>of</strong> a planet 3<br />
times the size <strong>of</strong> earth being devoured by its sun. Wow! What can<br />
we do? <strong>The</strong> answer is; be ready.<br />
Ask Questions<br />
Go from the general to the specific. Ask questions like: what<br />
is the worst thing that could happen to me? And answer them.<br />
- What would happen to me if my equipment was<br />
stolen and I couldn’t afford to replace it<br />
- What if my #1 client went out <strong>of</strong> business<br />
- If most <strong>of</strong> my clients couldn’t pay their bills<br />
- <strong>The</strong> economic slow down hurt my best contractors,<br />
my home builders, the cities I do work for<br />
- Or a trusted employee embezzled most <strong>of</strong> my funds<br />
and I couldn’t pay bills or meet payroll?<br />
And On and On<br />
- If an earthquake destroyed my <strong>of</strong>fice and truck and<br />
equipment.<br />
- A fire burned all my records<br />
- I was sued for unspecified errors and omissions by three<br />
failing clients looking for a quick financial fix<br />
- A flood, a fire, a sink hole, an oil spill wipe me out<br />
- Perhaps a car accident, or a workers comp injury, cancer,<br />
or sexual harassment or a wrongful termination suit<br />
- Or even a faulty survey?<br />
Risk Management Can Still Help<br />
Let’s look at the risk management criteria and see where we<br />
are.Remember: Identify and Control, Avoid, Reduce, Transfer,<br />
Retain?<br />
In a catastrophe there’s a bit <strong>of</strong> the all criteria involved as one<br />
struggles to survive.<br />
<strong>The</strong>se huge losses can’t be avoided but hopefully reduced and<br />
controlled, shared and insured and also retained. We all take risks<br />
in business and as the Peter Principle says: Whatever can go<br />
wrong, will go wrong. Failure <strong>of</strong> safety devices, back-ups, fail<br />
safes and monitoring equipment create the perfect storm. Safety<br />
reviews not done or ignored, financial audits overlooked, insurance<br />
not renewed, coverage ignored etc.<br />
<strong>The</strong> Hyatt walkway failed due to inadequate bolts. <strong>The</strong> Gulf<br />
oil spill rampage continues because <strong>of</strong> a failed blowout protector<br />
and risky well sealing and gas leaks.<br />
What Should You Do?<br />
- Like a fire drill, be ready, know what to do<br />
- Have experts ready to help you<br />
- Select you team <strong>of</strong> helpers<br />
- Insurance<br />
- Legal<br />
- Accounting<br />
- Rebuilding<br />
- Clean-up.<br />
Accidents happen and <strong>of</strong>ten they are no one’s fault. Just<br />
accept them and confidently move forward with your solid, prearranged<br />
plan to get back to where you were before your loss. <br />
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