21.03.2013 Views

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 ...

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

<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 />

35

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!