IMRI defines risk management as the practice of identifying and analyzing loss exposures and taking steps to minimize the financial impact of the risks they impose. Traditional risk management, sometimes called “insurance risk management,” has focused on “pure risks” (i.e., possible loss by fortuitous or accidental means) but not business risks (i.e., those that may present the possibility of loss or gain). Financial institutions also employ a different type of risk management, which focuses on the effects of financial risks on the organization.
Further, IMRI describes a risk management process as that making and implementing decisions that will minimize the adverse effects of accidental business losses on an organization. Making these decisions involves a sequence of five steps: identifying and analyzing exposures to loss, examining feasible alternative risk management techniques to handle exposures, selecting the most appropriate risk management techniques to handle exposures, implementing the chosen techniques, and monitoring the results. Implementing these decisions requires performing the four functions of the management process: planning, organizing, leading, and controlling resources.
The National Cannabis Risk Management Association (NCRMA), in forming the first such member group dedicated to the cannabis industry, has expanded this risk management reach outside of the traditional or insurance risk management approach defined above. Cannabis is disruptive and this disruption breeds additional risks well outside of the traditional boundaries of more stable and established markets. To best prepare members to address these challenges, the NCRMA is developing internal training and instruction as well as aligning itself exclusive service partners whose expertise address both these traditional and extended arenas. While companies like Protect-All Solutions (safety and loss control) and Tucker Arensberg (legal) provide assistances in a traditional manner, other companies have partnered with the NCRMA to solve the risks borne by the new, uncharted, and sometimes troublesome cannabis market. New allies and the risks that they address are as follows:
The Predictive Index/PRIMA Business Specialists/PI Midlantic
The Predictive Index offers today’s most comprehensive and effective solution for talent optimization. In today’s super competitive environment for people (resources where the number of job openings outnumber the available applicants for the first time since the Great Depression) putting the right people in the right paces is a key risk in determining a business’s success, as well as retaining key employees. The NCRMA has partnered with PRIMA Business Specialists LLC to address this risk. Founded in 2007, PRIMA Business Specialists LLC (PRIMA) is an execution-based business whose sustainable competitive advantage is the rapid delivery of resolutions to its client companies’ problems. PRIMA has served numerous clients in various industries and markets with services ranging from interim executives to TALENT OPTIMIZATION: all whose foundations are based on execution achieved through clarity, KPI measurement and single point accountability. ([email protected])
PRO Cannabis Media (www.procannabismedia.com)
FAKE NEWS has found its way into the cannabis market in a big way and not getting truth in news is also a major risk to NCRMA member success as decisions based on bad facts deliver bad results. PRO Cannabis Media ([email protected]) not only offers NCRMA members truthful and accurate reporting but also provides them with a vice that influences, directs and defines.
PCM Pro Cannabis Media is a Massachusetts-based media company dedicated to telling the true stories of the emerging cannabis industry through the real voices of those in the business. Pro Cannabis Media produces and distributes cannabis-themed podcasts, videocasts, live streams, and branded content from a diverse array of talented journalists and storytellers, anchored by its authoritative industry news and trend reporting, featuring In The Weeds with Jimmy Young and News Dabs.
The included represent on two examples of how the NCRMA’s extended definition of risk management and its requisite service partner solutions are supporting its members needs in ways unfamiliar to the traditional risk management industry. Future blogs will feature additional inventive services partners as well as report the opinions of members who have engaged these facilities.