08 Nov Why Risk Management?

There is nothing more exciting than joining with the C-suite of a company explaining the “why” of risk management.

Every dollar reduction in Total Cost Of Risk (TCOR) goes straight to the company’s bottom line.  One of my mentors told me it was much easier to “not spend money” that it was to “make money”.  Her perspective – to make a whole dollar in any business requires considerable work.  Here’s an example: to make a whole dollar operating with a 7% net after tax profit margin, a company must be able to account for sales of $14.28.  In a manufacturing operation, $14.28 is the cost to obtain raw materials, assemble, warehouse, sell, ship and collect payment before the company makes a single $1.

So here’s why “Risk Management”.  Because making money takes money.  That’s why risk management framed in the context of reducing Total Cost Of Risk makes sense.

Want help calculating your TCOR?  Contact us! Our goal is simple.  Empower our clients so they don’t feel like they live at the mercy of insurance carriers.  There’s a lot more to that than just “shopping insurance”.

-A