Orgs Taking Closer Look @ Risk Management

Survey explicates how Risk Management is being scrutinized more heavily in the eyes of CFOs. This includes issues such as Reputational and Supply chain Risk. Not simply trad P/C exposures. Perhaps one day, RM will share equal importance with a company's balance sheet. The Article link is here.

2 Quick Thoughts: 1) All companies with revenue over $30m should have a full-time RM who deals with all aspects of the co's Risk and Insurance Plans. . .including health & welfare. This individual should interface regularly with the CFO and CHRO (Chief HR Officer). Each performs different functions.

Think the position of a CRO is superfluous in this economy? Insurance is the second largest expense behind payroll.

2) Health Insurance and EE Benefits should also fall within the purview of the CRO. The CFO and VP of HR have their own agendas to accomplish today. Analyzing their company's loss ratio isn't one of them.

-JS