Creating a Standard Operating Procedures Manual

A risk manager is responsible for creating the desired level of risk that will allow an organization to achieve its goals. In step one of the risk management process (creating a risk management program), the board of directors and senior managers should have clearly articulated the desired risk levels,

With these goals in mind, the risk manager then organizes teams of risk associates. The internal teams handle routine risk management functions, and the external teams are called in to handle special needs, such as loss control engineering, insurance placement or claims adjusting. At this point in the risk management process, the risk manager is ready to create the risk management standard operating procedures (SOP) manual.

A risk management SOP manual is a set of written instructions that describes how risks are managed in an organization. The development and use of an SOP is recognized by management experts as an integral part of a successful quality system. It provides managers with timely information to do their jobs properly, facilitates consistency and enables better decision making. SOPs describe the technical, administrative and operational activities an organization performs. The purpose of an SOP is to describe the work processes conducted in a specific organization to create the desired level of risk.