Question

Is there evidence that employing a risk manager is fiscally sound?

Answer 1

Risk management is the identification, appraisal, and prevention or minimization of exposures to accidental loss for an organization or individual.Since risk offers not only the opportunity for growh but also for harm, risk managers must predict and prevent or control any potential harm.

Risk managers deal with identifying, measuring, and evaluating different types of risks that can affect a business. They look at what could go wrong, they evaluate the impact of what could go wrong on the business, and they come up with strategies to minimise, eliminate, or transfer the risk.

Risk managers need to possess analytical skills, and they must have an eye for detail. They also need to be knowledgeable about the industry they operate in, so that they are able to identify the risks posed to a specific organisation.

Major benefits of having arisk manager are:

• * Provide a methodology to identify and analyze the financial impact of loss to the organization, employees, the public, and the environment.
  • Examine the use of realistic and cost-effective opportunities to balance retention programs with commercial insurance.
  • Prepare risk management and insurance budgets and allocate claim costs and premiums to departments and divisions.
  • Provide for the establishment and maintenance of records including insurance policies, claim and loss experience.
  • Assist in the review of major contracts, proposed facilities, and/or new program activities for loss and insurance implications.
  • In cooperation with General Counsel, maintain control over the claims process to assure that claims are being settled fairly, consistently, and in the best interest of the entity.

    The Risk Manager cannot be successful without the assistance of other groups within the organization. At Marquette University, cooperation from departments' and divisions' staff is essential.

  • Other managers must provide information necessary for the risk manager to review and identify loss exposures.

  • Supervisors must be aware of their role in the prevention of loss and be accountable to follow procedures, attend risk control meetings, and, when appropriate, provide any recommended training.