After more than a decade in the risk management business, Arthur B. Kordus Jr. has some advice for his peers and for those who would follow in his footsteps:
1. Don't risk a lot to save a little.
2. On major property/casualty lines, risk managers should meet with underwriters directly, and not rely on intermediaries.
3. In the global risk management realm, establish a policy that doesn't detrimentally rely on the Difference in Conditions treatment. The use of admitted and nonadmitted programs may be a more effective approach.
4. Don't major in minors. Apply common sense and always stay cognizant of scarcity of economics, which means understanding the constraints of time and resources on operating units. Build broad-based support with human relations, operations, sales and legal in lieu of being stuck in too much of a pigeonhole.
5. Don't just focus on finance when pursuing professional development. An "open curriculum" approach of understanding HR, law and even international relations affords a range of expertise in a company. Spend time with the sales and marketing force to stay close to the transaction, and try to augment the sale within the risk management application.
September 15, 2006
Copyright 2006© LRP Publications