COUNTERPOINT: Up to the Task
Whatever the world throws at business, risk management is ready.
By Dan Reynolds, managing editor of Risk & Insurance.®
Talk to a risk manager who knows what she or he is doing, (and there are more than a few of them out there), and you'll have no doubt about the ability of risk managers and their teams to handle whatever is thrown at them.
Brokers and carriers who were brought up in the old school -- the "sign on the dotted line and we'll take care of the rest" school -- have learned by now that risk managers are not the passive partners they once took them for. If they take them as passive partners, we can assure you that they are probably not billing that customer anymore.
Armed with data and a keen desire to use it, risk managers are now unpacking property, workers' compensation and other risks.
In turn, they're getting a much better handle on where their exposures lie and what risk mitigation techniques to employ.
And they are not working alone.
Corporations have figured out that the risk management department should be marching to the same tune chief executive officers are calling for finance and operations.
And this is not just in the practice of defensive risk management. Risk management has now evolved to the point where strategic risk management is the watchword.
A loss can be turned into a win by a company that is savvy enough to use a property loss to cut down on an unprofitable production line, or change locations to shore up its supply chain after Mother Nature gives this or that geographic area a slap.
Risk managers are also not working alone because their outside partners, be they modelers, third-party administrators, pharmacy benefit managers, or forensic accountants, just to name a few professions, are getting more sophisticated right along with them and making good money doing it.
One of the most important questions facing the industry these days is not whether it can muster the data and the analytics to master risk.
The issue may instead be where is it going to find the talent to run the analytics?
Generation Y and the millenials certainly need special handling but they've also got the technical skills to help risk management move forward.
Does this industry have the touch to bring this new crop of employees along?
April 12, 2013
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