While most mid-size companies have talented management teams, they quite often lack the knowledge and tools to create, implement, and maintain effective risk management programs. Instead, they rely on insurance, which is simply a form of risk financing and does nothing to control risk. This over reliance on insurance without adequate risk control creates an imbalance which, if left unattended, results in financial leakage that undermines a firm’s ability to compete in the marketplace.
As a seasoned insurance broker and Certified Risk Manager (CRM), author Ed Kempkey observes these imbalances and the financial impact they have on organizations. As a student of risk management, he understands the alternatives that are available to help companies avoid these unnecessary costs. In Balancing Risk, Ed combines his four decades of experience with state-of-the-art concepts and tools to help organizations put in place practical risk management programs.
Balancing Risk exposes five risk management myths and focuses on the four business risks that every organization faces. You will learn about the total cost of risk, why it is important, and how to calculate it for your company and use it to your advantage. In addition, a step-by-step process is presented, along with examples that you can follow to develop your risk management program. Finally, you will be shown an easy way to document your plan, and tips for administering the program.
Throughout the book Ed includes personal anecdotes to supplement the rationale of a principle or the description of a technique or process. Some of his short stories are of success, and others of failures. In either case, they illustrate the concepts presented and add a touch of reality in the process. No longer reserved for large companies, the best practices presented in this book can be implemented in organizations of all sizes with positive, long term, sustainable results.