Updated: Aug 17, 2020
There are many advantages of incorporating risk management plans into an integrated master schedule. These plans help in reducing costs related to insurance premiums and increasing financial flexibility of the insurance provider. Apart from this, the incorporation of this plan in a comprehensive master schedule helps in increasing customer retention and enhances the customer satisfaction levels.
A risk mitigation plan is a document that outlines the different risks that are faced by the insurance provider in a given year. This document is then incorporated into the master schedule as an integrated plan. This allows for easy reference of the plan to the concerned departments of the insurance provider. Moreover, these plans also help in identifying the various risk management measures that are required to be implemented in a given year to reduce the level of losses.
These plans help in reducing the cost of consumables & assets and help to bring down the costs of project spendings. Apart from this, the implementation of risk management plans also helps in increasing the financial savings and reducing the costs associated with it. In addition to this, the plan also helps in maintaining client relations and retention of clients.
In short, the main benefits of an integrated risk management plan include the reduction in the cost of spendings and increased financial flexibility. These plans also help in reducing the number of claims that need to be processed. Apart from this, there are many other benefits associated with an integrated risk management plan.
It is a better approach for the contractors and operators to adopt an integrated risk management plan as part of their integrated master schedule. This is because an integrated master schedule helps in reducing the expenses associated with the master schedule and provides customers with a more cost effective option and master schedule is more flexible and can be modified to suit the needs of the project.
The risk management plans also help in enhancing contractor's loyalty by ensuring that the plan covers all the required needs of the client. This helps in reducing the service costs as the contracts are not required to submit claims in the form of time loss.
Apart from this, it also helps in improving client satisfaction levels and increasing the customer-retention rates. This is because a risk management plan helps in identifying the areas that are risk free and helps in managing the overhead costs of clients. Moreover, an integrated risk management plan also helps in reducing the cost of overall project.
Summary of Benefits: Cost Reductions, Asset Management, Cash Flow Maintenance, Loyalty with client, Client satisfaction, Claim reductions, On-time completion, Market reputation