According to a recent survey published by Marsh and RIMS, 51 percent of C-suite executives said their companies do not measure total cost of risk measurements, while many C-suite executives are unaware of what total cost of risk measurements are.
The survey found many C-suite executives want risk managers to take a more assertive approach when assessing strategic planning efforts, as well as enterprise risk management activities.
“The C-suite clearly is telling the risk manager to grab hold of strategic risk management,” said Brian Elowe, a managing director in Marsh’s Global Risk Management Division. “Risk managers who are not seizing this opportunity should assess the resources they need to help meet management expectations.”
Approximately one-third of the respondents to the survey said the latest economic recession led to using more analytics when assessing risk management, while 75 percent of companies will reconsider their approach to risk management following natural disaster in 2011.
Although good risk management plays a crucial part in preventing losses, it’s critical for a company to secure all the necessary business insurance policies that will provide a safety net.
