|
|
Article: CONTROLLING TOTAL COST OF RISK
- Article from:
- Rough Notes
- Article date:
- March 1, 2004
- Author:
CopyrightCopyright Rough Notes Co., Inc. Mar 2004. Provided by ProQuest LLC. (Hide copyright information)
|
A team approach to risk management
As a practicing risk manager, I put one goal above all others-reducing total cost of risk. Fortunately, I have been able to find insurance agents, carriers, and third-party administrators who share that primary focus. Even though reducing my company's total cost of risk might ultimately reduce premiums, commissions, or fees paid to them, these external members of my risk management team know their commitment to this goal fosters a stronger, long-term bond with me, their client.
Total cost of risk is a simple equation:
Risk Management Costs
* Retained Losses
* Insurance Premiums
* Outside Services
Total Cost of Risk
Cost of risk can also include indirect ...