Risk Management

Our approach to risk identification and evolution

Grupo Galilea S.A., within its staff, incorporates professionals (Engineers, Architects, Economists, etc.) who put their experience at the disposal of our clients for the whole range of possibilities offered by an adequate Risk Management policy.

But what does Risk Management intend to do?

At Grupo Galilea S.A. we always approach our work methodology with our clients based on the management of the random risks that may affect them, understanding Risk Management as the identification, analysis, quantification and treatment of these risks, with the fundamental objective of minimizing these risks at the lowest possible cost.

Our work is marked by the following objectives:

To protect the company's income statement by adequately transferring risks.
Maintain the activity within the current legislation regarding the means of prevention and protection of its assets.
To reduce the insecurity of operations to tolerable limits, reducing risks beyond the requirements of the insurance market.
Improve personal working conditions, making them safer, implementing protective measures, also beyond the requirements of the insurance market, adapted to the Occupational Risk Prevention Law and the Regulations that develop it, and favoring productivity.
Facilitate the continuity of activities after an incident, recommending and supporting the drafting of emergency and contingency plans.

The quickest mechanism that allows us to identify, evaluate and control the different risks that make up our client's operational activity is the application of the "rapid" risk map.

To do so, we will analyze each of the risks previously identified by our engineers.

The final decision of the company's management will determine the best solution to address the risks already identified and assessed.

And finally we will make the report on the collection of applicable measures for each identified risk, taking the most optimal decision and deciding which part will be assumed by the company as risk to be controlled and which part we will transfer to the insurance sector.

Once it has been determined which risks will be controlled and retained by the company and which other risks will be transferred to the insurance market, we will analyze the total cost of the risk by applying the cost indicators shown in the following chart:

The technical proposal leads to a significant reduction in the total cost of risk by optimizing;

The applicable deductible or self-retention of claims,
Cost of losses not covered by insurance policies
Administration and management expenses of the insurance programs, broker and the company's own equipment under study.
Non-covered claims expenses.
Engineering, control and risk prevention expenses.

Our methodology is based on Continuous Assessment, focusing all efforts on reducing the Total Cost of Risk, in order to minimize the cost of each of its components.

Once the total cost of risk has been determined, we can conclude and optimize costs by maintaining our ongoing management approach.

And finally, optimizing processes based on the continuous improvement technique for the five fundamental phases of risk and insurance management and consulting.