Enterprise Risk Management
Relationship Proposition
My father, drawing on 40 years of transportation sales taught me a fundamental lesson. “The job
is to take care of the customer. If I build a man a truck, it will take care of him. He will then take care of me.”
Companies already deploying Enterprise Risk Management say the financial crisis helped prove the value of ERM to their organizations. Over 1,000 respondents to a global risk management survey reported an ERM “operational” in 24% of all cases; 12% were advanced; 7% were “in the initial phase”. The remaining 57% had no plan in place.
Eighty percent of the respondents said expectations about company risk management departments have risen in the wake of the financial crisis, according to the respondents. “They were very interested in making sure they were aware of the risks that can cause further financial harm.”
(Business Insurance, May 16, 2011.)
Our risk management consultation is designed to review your business operations in detail, and then to best recommend the proper risk management available to meet that end. This does not necessarily mean an insurance purchase to reduce risk.
Our risk management consultation will provide the best means to protect your business. The process may increase or decrease your bottom line cost, but the goal will be to protect your balance sheet’s bottom line.
If we do not provide a risk management review of your business, you may well not suffer a loss to your bottom line. Then again, why take the chance when a no cost review is yours for the asking?
I would propose a meeting at your convenience in order to review your business objectives and risk management strategies.
Following our meeting you will have a better understanding of the risks to your business and how best to eliminate them.
Enterprise Risk Management – Managing Extreme Events
Enterprise Risk Management Perspective
Management should have a central system to review crisis points. To do this, management should review the current risk management program in place to create an ongoing short list of goal improvements.
Management should not directly manage risk. Management should be delegated to staff starting with a collaboration with lover level managers.
Management should anticipate crisis with control measures in place. Only after all this is accomplished should management transfer risk to an insurance program.
A Risk Manager should:
1. Facilitate risk identification by helping management to determine the magnitude and probability of risk, the degree of control in place, and how quickly that control can be brought to bear on risk.
2. Identify measurement methods to determine risk.
3. Prioritize information on risk to the business.
4. Monitor and track management priorities.
5. Coordinate compliance functions to control risk.
The business manager should:
1. Audit the risk policy and governance.
2. Determine the effect of risk limitation on company finances.
3. Oversee the evaluation of operational risk to the business.
These items are not costly if integrated in management philosophy.
When it comes to financial security and insurance protection, most people want a long-term relationship with a trusted advisor they can turn to many years into the future.
Bob Turner Agency, Inc.
