No two industries face the same risks — and no successful risk management strategy should treat them as if they do. From natural disasters and cyberattacks to regulatory compliance and labor shortages, each sector faces unique operational, financial, and reputational threats that require tailored solutions.
“Companies require dynamic and flexible risk management to navigate an unpredictable future in which change comes quickly,” says McKinsey & Company. “Companies need a systematic way to decide which risks to take and which to avoid.”
At Dean & Draper, we help organizations across Texas and beyond develop custom risk management plans that align with their sector, scale, and strategic goals. Here’s how different industries face different risks — and why targeted mitigation matters.
Risk Management: More Than a Checklist
Risk management is often misunderstood as a one-time checklist or compliance task. In reality, it’s an ongoing process that helps organizations:
- Identify and assess risks that could impact their goals.
- Prioritize and mitigate those risks through insurance, process changes, and contingency planning.
- Prepare for rapid recovery if the unexpected occurs.
A strong risk management program doesn’t just reduce exposure — it helps organizations build resilience, preserve profitability, and stay competitive.
“Smart businesses recognize that risk is not static. New threats emerge, regulations evolve, and operations shift. Your risk management strategy must evolve, too,” says Kyle Dean, President & CEO Dean and Draper.
Industry Spotlight: Energy & Utilities
Key Risks:
- Commodity price volatility.
- Operational failures and outages.
- Regulatory noncompliance.
- Cyberattacks on grid and Supervisory Control and Data Acquisition (SCADA) systems.
- Environmental incidents.
Texas’s energy sector is both powerful and exposed. With increasing reliance on renewables, aging infrastructure, and extreme weather patterns, utilities must manage a complex web of physical and financial risk.
Risk Management Strategies:
- Predictive maintenance and operational resilience planning.
- Environmental liability insurance.
- Cyber insurance focused on operational technology (OT) systems.
- Market hedging strategies to manage commodity volatility.
- Regulatory compliance tracking.
Example: A ransomware attack on a regional power provider could shut down operations for days. Without cyber coverage and a tested business continuity plan, recovery would be slow and expensive.
Industry Spotlight: Construction & Real Estate Development
Key Risks:
- Jobsite accidents and OSHA violations.
- Theft of tools and building materials.
- Weather-related project delays.
- Subcontractor default.
- Litigation over design flaws or contractual disputes.
Texas construction is booming — but with growth comes exposure. From unpredictable storms to theft and labor shortages, builders face constant disruption.
Risk Management Strategies:
- Builders risk insurance to protect worksites.
- General liability and umbrella policies.
- Surety bonds and subcontractor vetting.
- Safety protocols and training documentation.
- Delay-in-completion insurance for major projects.
Stat: Construction site theft results in over $1 billion in annual losses in the U.S., with Texas ranking among the top states for reported incidents.
Industry Spotlight: Manufacturing & Supply Chain
Key Risks:
- Equipment breakdown and production stoppages.
- Supply chain interruptions.
- Product recalls or safety defects.
- Workplace injuries and workers’ comp claims.
- Cyber incidents affecting ERP or inventory systems.
A single failure in the production line or a delayed shipment from a key supplier can ripple through operations and customer relationships.
Risk Management Strategies:
- Equipment breakdown insurance and service agreements.
- Business interruption and contingent business income coverage.
- Product liability and recall insurance.
- OSHA-compliant training and risk audits.
- Cyber liability coverage for digital supply chain vulnerabilities.
Stat: Business interruption is the top cause of insurance-related concerns in manufacturing, according to Manufacturing Tomorrow.
Industry Spotlight: Healthcare & Medical Practices
Key Risks:
- Data breaches and HIPAA violations.
- Professional liability/malpractice.
- Supply chain disruptions for critical medications or equipment.
- Reputational damage from adverse events.
- Staffing shortages and burnout.
Healthcare providers operate in high-stakes environments where even minor disruptions can jeopardize patient care and organizational trust.
Risk Management Strategies:
- Cyber insurance with breach response services.
- Malpractice and professional liability insurance.
- Business continuity and backup supplier agreements.
- Crisis communication and media relations protocols.
- Staff wellness and retention programs.
Stat: Between 2018 and 2023, ransomware attacks on U.S. healthcare organizations increased by 93%, according to HIPAA Journal.
Industry Spotlight: Professional Services (Legal, Financial, Tech)
Key Risks:
- Errors and omissions (E&O).
- Data breaches and client confidentiality violations.
- Contract disputes and regulatory actions.
- Intellectual property (IP) theft.
- Business continuity gaps (especially in remote work models).
For service providers, a single misstep can result in costly legal exposure or long-term brand damage.
Risk Management Strategies:
- E&O and professional liability insurance.
- Cyber insurance with social engineering and phishing coverage.
- Regulatory compliance audits (SEC, FINRA, etc.).
- IP protection strategies and confidentiality controls.
- Disaster recovery planning for IT systems.
Stat: The average cost of a data breach in professional services is $4.9 million, per IBM’s 2024 Cost of a Data Breach Report.
Enterprise Risk Management (ERM): A Framework for All Sectors
While risks differ by sector, the framework for managing them can be standardized. Enterprise Risk Management (ERM) offers a holistic way to address:
- Strategic risks.
- Operational risks.
- Financial and regulatory risks.
- Reputational threats.
- Emerging risks like climate and AI.
Key components of an effective ERM program include:
- Routine risk assessments and scenario planning.
- Defined risk tolerance thresholds.
- Insurance policies that align with risk exposure.
- Training, audits, and communication plans.
- Executive buy-in and board-level oversight.
“An effective risk management framework is not a ‘set it and forget it’ tool — it’s a living process that must evolve with your industry, technology, and team,” noted Dean.
Dean says a strong risk culture is essential for long-term success of ERM with leadership commitment, continuous learning, and embedding risk management into the existing organizational processes and decision-making frameworks all part of the equation.
How Dean & Draper Supports Industry-Specific Risk Management
Dean & Draper brings decades of experience helping Texas businesses identify, assess, and insure against sector-specific threats. Our services include:
- Risk assessments are customized to your operations.
- Policy reviews to uncover gaps or overlaps.
- Guidance on compliance, coverage limits, and best practices.
- Access to top-tier insurance carriers and products.
- Ongoing support to help you adapt your risk plan over time.
Whether you run a health care center in Houston, a construction firm in Dallas, or a manufacturing plant in San Antonio, Dean & Draper can help you manage what matters most.
“Remember, a multi-million-dollar chip manufacturer has very different challenges than a private school, but both deserve to be protected against any unexpected accidents or mistakes,” concludes Dean. “Our team can help you design an insurance program that addresses the needs of a broad scope of industries from food, agribusiness and beverage to marine to non-profit organizations.”
Contact us today for a risk assessment or policy consultation. Let’s build a plan that fits your industry, your business — and your future.
The recommendation(s), advice, and contents of this material are provided for informational purposes only and do not purport to address every possible legal obligation, hazard, code violation, loss potential, or exception to good practice. Dean & Draper Insurance Agency specifically disclaims any warranty or representation that acceptance of any recommendations or advice contained herein will make any premises, property, or operation safe or in compliance with any law or regulation. Under no circumstances should this material or your acceptance of any recommendations or advice contained herein be construed as establishing the existence or availability of any insurance coverage with Dean & Draper Insurance Agency. By providing this information to you, Dean & Draper Insurance Agency does not assume (and specifically disclaims) any duty, undertaking, or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.
The recommendation(s), advice and contents of this material are provided for informational purposes only and do not purport to address every possible legal obligation, hazard, code violation, loss potential or exception to good practice. Dean & Draper Insurance Agency specifically disclaims any warranty or representation that acceptance of any recommendations or advice contained herein will make any premises, property or operation safe or in compliance with any law or regulation. Under no circumstances should this material or your acceptance of any recommendations or advice contained herein be construed as establishing the existence or availability of any insurance coverage with Dean & Draper Insurance Agency. By providing this information to you, Dean & Draper Insurance Agency does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.