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There is risk associated with everything we do in life. In today’s world, business risk and the ability to quantify in dollars is increasingly important.
At The ALS Group, we look at your Total Cost of Risk (TCoR) as a quantifiable, controllable number that can be identified and reduced. Simply put, TCoR is the total cost of your insurance premiums, losses and cost for related outside services (attorney’s, safety engineers, etc).
Many providers take a one dimensional view that the cost of risk is, simply, premiums rather than all of the other components that influence risk mitigation for a program. We are committed to risk management. Our focus is one that a Company would get from their risk manager and not their broker. We believe this makes our perspective dynamically different. We focus on becoming your business partner to help you and your company identify and develop management strategies that will help reduce your TCoR and improve your bottom line.
Understanding your TCoR is a fundamental purpose of our
Risk Management Assessment (RMA).
Total Cost of Risk (TCoR) is a simple equation that captures the
cost your organization incurs to manage risk.
The TCoR uses the following formula:
Every dollar reduced goes straight to the bottom line. Companies who implement best practices identify and
develop strategies to manage each of these costs..
The ALS Group partners with organizations to
identify, manage and ultimately reduce the cost and herein increase
your profitability.
"What gets measured gets managed!"
Questions to consider:
1) Do you use this
metric to evaluate how successful your risk management process is?
2) Have you
benchmarked your TCoR against your peers?
3)
Do you balance
retention vs. premiums so that your risk cost is optimized?
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