Episode 13: Basics of Risk Management

When growing a business, you face a number of potential risks that can threaten your business in a number of ways. The loss of assets, income, liability to others, financial liabilities... among others.

Risk management is the process utilized to control and limit loss. That process includes identifying, analyzing, and mitigating risk. In general, there are four primary ways, or a combination thereof, that are used to treat and control a risk:
To Avoid the risk (stop doing the risky activity or dispose of the asset)
To Reduce the risk (limit risky activity and/or take proactive actions to limit risk)
To Transfer the risk (via Insurance or Contractual Agreement)
To Retain the risk (in-whole or in-part)

In the process of risk analysis, most risks can be assigned into one of four categories based on the frequency of losses and the potential severity of potential losses. For each category, there is a standard risk management treatment typically utilized to mitigate the risk:

Low Risk + Low Severity = Retain the risk
Low Risk + High Severity = Transfer the risk (to an insurance company)
High Risk + Low Severity = Reduce the risk (or transfer)
High Risk + High Severity = Avoid the risk

Most aviation exposures fall into the Low Risk, High Severity category, so aircraft owners typically address their aviation risks by transferring the bulk of the potential (pure) financial loss to an insurance company by purchasing an insurance policy. The insurance policy is a legal contract set to indemnify you in the event of a direct loss. To indemnify (indemnification) is to restore the insured to the condition they were in prior to the loss. That means that an insured is not meant to benefit from a loss, but to be brought to the status they would have been had the loss not occurred.

Risk management is a simple process in nature, but can be much more involved and treated in more complex ways as operations get larger and more complex. However, the majority of aircraft owners and operators will find this concise information will provide a general understanding for their benefit.

Keep your business flying high by implementing these basic risk management techniques. Should you have a sophisticated business, be sure to partner with strong trusted advisors including an attorney, CPA, knowledgable insurance broker, and perhaps a Risk Manager, or financial risk manager.

The Aviation Business Podcast is sponsored by my company, Aeris Insurance Solutions. If you’d like to connect you can email me at Tim.bonnell@aerisinsurance.com or check out the website www.aerisinsurance.com

If you liked this podcast be sure to head over to iTunes and click subscribe and even leave a 5 star review. Also share this with others in your company and your industry friends. Until next time keep your wheels up and your wings level.

Episode 12: Habits

In the last episode, we talked about Key Performance Indicators, more specifically, Lead Indicators being key to the execution of our goals. These lead indicators are essentially daily and weekly habits that, when executed, lead to the success of our goals. So being able to effectively establish and maintain effective habits are key to success.

Here are 5 Ways to successfully implement habits:

  1. Commit up front to try the new habit or routine for a minimum of 90 days. 

  2. Have a clear vision or picture of what the end result looks like. 

  3. Have the right support system. A coach and/or mastermind group.

  4. Keep score - what get’s tracked get’s executed. 

  5. Know that change isn’t easy - Don’t make excuses or justify anything less than success.

Episode 11: Execution - Key Performance Indicators

Most business track key performance indicators in their businesses to determine their success. These are usually results of past work such as: total sales volume, EBITDA, bottom line, number of products produced, customer satisfaction ratings etc. These are all Lag Indicators.

In order to improve results, and execute goals, it is highly beneficial to establish Lead Indicators. Lead Indicators are daily and weekly habits, actions, and activities that if done consistently lead to the desired results. Hear more about this episode.



Episode 10: Leadership Coaching Part 2: Asking Good Questions

Asking quality, open-ended questions, that lead a coachee towards the desired outcome creates several wins. You've helped the coachee move closer to their goals, and you've helped them to be able to ask themselves better questions in the future. You're training them to problem solve.

The 3 Types of Questions:

  1. Open (can't be answered yes or no)
  2. Bigger (expands the coachee's view)
  3. Probing (narrows and extends the coachee's thought process)

S.M.A.R.T. Goals

  • Specific
  • Measurable
  • Attainable
  • Relevant
  • Time Bound

G.R.O.W Model

  • Goal: Focus and narrow down to a specific goal
  • Reality: What is the reality of the situation today?
  • Options: What are a number of options that could be potential solutions
  • Win: The one or two actions the coachee commits to doing

Episode 9: Coaching - Active Listening

Learning effective coaching skills is important to growing your business. In this episode we see three key foundations to effective coaching:

1) To genuinely want to see the coachee grow.

2) To ask good open ended questions

3) To actively listen 

Then we examine the 3 Levels of Listening:

1) Level One is passive listening.

2) Level Two listens but is too caught up in preparing for the response, offering advice, or continuing the conversation.

3) Level Three listening is fully engaged active listening that doesn't judge or prepare advice for the coachee.

Learn more about being a Level 3 Listener in today's episode below.

Episode 7: Self-Awareness

Self-Awareness is the foundation on which all growth is built. In this episode, we talk about a number of self-awareness tools including:

Contact me at tim.bonnell@aerisinsurance.com for questions.

Episode 6: Growth Principles

Check out this episode the learn 4 key growth principles that will help take you, and your company, to a higher altitude.

  1. People develop best when they’re in the game.

  2. Self awareness is the foundation on which all growth occurs.

  3. People only grow when they own their own development.

  4. It is nearly impossible to grow outside trusted relationships.

Episode 2: Core Values

Core Values are the lifeblood of an organization. Learn how to take your business to a higher altitude in this episode.

Here are a few steps to help you identify your core values:

  1. Review your purpose, mission statement, and vision story. Do you see common words or themes that reoccur? If so create a list.

  2. If not, Google Core Value List for ideas such as Integrity, Honesty, Reliability, Loyalty, etc. Develop a list.

  3. Identify similar values and group them together.

  4. Use a Thesaurus (like Thesaurus.com) to identify similar words.

  5. Narrow the list down to 3-6

  6. Phrase and define these top values

  7. Review - Are any of these similar and could be combined, or one removed?

  8. Try to narrow your final core value list to 3 or 4.

  9. Communicate the new clear values, live them out, Reinforce them. List them - Intranet, Employee Manual, Banner, Weekly Huddles, Team Meetings, etc. and celebrate wins when a team member lives out the core values,


Episode 1: Purpose, Mission, Values

On this episode we look at the foundations to clarity and direction in your business: purpose, vision, values. Hosted by Tim Bonnell

Some questions to help you clarify your vision:

  1. Who are we impacting and working with? Who do we need to be impacting and working with?

  2. What Products or Services are we currently providing? What products or services do we need to providing

  3. How do we plan to grow in terms of output?

  4. Do we have all the people we need to accomplish our vision? If not, who do we need?

  5. What tools do we need to accomplish the vision?

  6. What specific goals/objectives do we plan to reach to accomplish our vision and when?