Risk Management Outsourcing
In the current volatile business environment, effective and efficient day-to-day risk management is critical to an organization’s people, processes, and long-term viability. The risk management department serves a vital role given its unique position within an organization at the crossroads of the operational, financial, accounting, and strategic functions. A proven, structured approach to assessing and developing a risk-aware culture—the core responsibility of a risk management department—can help to mitigate risk across an entire organization.
Building and sustaining such a model requires the involvement and vigilance of experienced senior risk management professionals. While many organizations employ such individuals on a full-time basis, others do not due to convention, organization size, or budgetary issues. Regardless, Marsh Advisory's specialists can provide the focused expertise where and as needed: from execution of day-to-day risk management tasks; to reengineering key processes; to driving the adoption of risk aware culture, so that an organization can meet the challenges posed by today’s complex and emerging risks.
Our risk management outsourcing professionals have the experience and expertise required to help organizations streamline risk management activities. During a preliminary risk management function review, we will assist an organization’s senior management team with determining the current and desired future state of its risk management function and the roles to be assigned to its risk management department.
If desired, Marsh Advisory will document current risk management department activities to identify gaps with senior management’s desired goals. We will make recommendations for refocusing an organization’s risk management staff to meet senior management’s expectations and propose how we can support the execution of a risk management department’s activities through outsourcing. Beginning with one of three outsourcing models, we customize our cost-effective range of solutions to meet each organization’s risk management objectives.
Limited Outsourcing Model
Marsh Advisory provides organizations with a thorough review of their risk management department by first documenting and assessing current activities. This review includes interviewing task performers and capturing key process steps. Following such an assessment, our professionals will recommend process reengineering, which includes an in-depth comparison of current process flows with our understanding of best practices. At the completion of the reengineering, Marsh Advisory will make recommendations to improve the overall process efficiency and effectiveness of an organization’s risk management department.
Hybrid Outsourcing Model
Marsh Advisory offers a more hands-on approach with the onsite presence of part-time senior risk management professionals. Services include:
- The documentation and assessment of current key processes.
- Process reengineering.
- The outsourcing of a limited range of risk financing, management reporting, and risk administration activities as agreed with the client.
Our senior risk professionals deploy their industry-leading expertise by facilitating timely renewal of insurance policies, covering preparation for insurance applications, and coordinating marketing activities and timely receipt of quotes with brokers. Periodic management reports provide detailed insight into claims frequency and severity, identifying key points of vulnerability. In addition, Marsh Advisory's risk experts can build, implement, and maintain risk improvement programs, thereby mitigating the potential impact of operational risks.
Full Outsourcing Model
Marsh Advisory provides a full or part-time onsite and offsite risk management service that is customized to each organization’s needs. In addition to the services provided in the limited and hybrid outsourcing models, our specialists, led by a senior risk professional, can:
- Train and mentor a client’s existing risk management professionals.
- Recommend changes in claims strategy to improve claims results, and overall risk strategy, to assist the organization’s executive team in its determination of its key risks and risk appetite.
- Help communicate major risk management policies and procedures.
- Assist with building key internal partnerships to optimize the risk management function.