Risk Management Optimization
Risk management today is a critical business function, underpinning the operational, financial, accounting, and strategic health of a company. Many companies now recognize the need to implement a well-functioning, formal risk architecture that can help them not only reduce and mitigate risk across the entire organization, but spot opportunities to improve performance.
Marsh can help organizations develop a new or evaluate their existing risk management framework and implement leading practices for driving improved results through the risk management function. We also can provide a short-term, interim senior risk management professional during transitional periods.
Risk management is more than the process of simply avoiding dangers. When properly positioned, risk management leverages a global view of the organization to identify the “big picture” risks as well as opportunities to apply risk management techniques across departments to improve performance. Marsh can help you develop a better understanding of the responsibilities and relationships that are key to effective risk management and create the structures and relationships you need to build a respected, world-class risk management function that delivers high value to the organization. We assist organizations with or without a current risk management function.
Risk Management Function Review for Existing Risk Management Team
Marsh can provide a thorough review of your current risk management function, including:
- Core responsibilities such as strategic fit within the company, communication, safety/loss control, claims management, claims analysis, risk financing, management reporting, advice/guidance to operations, and hazard risk administration.
- Processes such as allocation of the cost of risk, certificate of insurance processing and tracking, claims reporting, oversight of insurance programs, and contract review.
- Relationships such as finance/treasury, safety, operations, real estate, environmental, information systems, third-party vendors, human resources/ benefits/compensation, tax, legal, internal audit, intellectual property, board of directors The review is conducted through meetings, interviews, and discussions with senior management, the risk management team, vendors, and key partners inside and outside the company that do or should interact with the risk management team. The review culminates in a detailed report to senior management that typically includes:
- A clear summary of the current functions/tasks being handled by your risk management tea.
- Recommendations on the potential streamlining of some of these functions/task.
- A gap analysis between the current practices and Marsh’s leading practices, with recommendations for potential areas of expansion.
- Identification of process improvement opportunities, including process flow diagrams for the appropriate critical processes.
- A clear summary of the risk management team’s current internal and external relationships.
- A comparison of the relationships to Marsh’s leading practices.
Risk Management Function Review for Nonexisting Risk Management Team
To help organizations build a formal risk management function from scratch, Marsh offers a thorough review and report that provides senior management with:
- A better understanding of leading practices for structuring the risk management function, including key responsibilities and relationships.
- The value that such a function could bring to the company.
- A better understanding of the responsibilities/tasks currently being outsourced to vendors and of current relationship.
- A gap analysis of current responsibilities and relationships based on Marsh’s leading practices.
- Recommendations on the blend of insourcing and outsourcing appropriate for your organization.
- Recommendations for strengthening and/or building relationships.
For companies with an immediate need for a senior risk management professional to fill a temporary gap, Marsh provides interim risk management services. Our highly experienced professionals are ready to carry out risk management responsibilities for a three-to-six-month period until the position is filled. While all final decision making lies with your company, we provide:
- Day-to-day execution of risk management responsibilities.
- Documentation of all key activities performed, key risks identified and risk assessments made by Marsh, and decisions made by your company.
- Status report of all claims filed with insurer.
- Satisfaction survey completed by your business leaders and senior management.
- Recommendations for risk financing programs for your organization.