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Practice of Risk Management > 1 - The Risk Manager > Flashcards

1 - The Risk Manager Flashcards

1
Q

The Risk Manager understands that the risk management department

A
  1. information repository
  2. Analyze information
  3. communicated information
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2
Q

RISK MANAGER
Who are Risk Managers?

A

a. A single dedicated risk manager
b. A risk management department
c. Other employees – depending on job functions and specialties (CEO, HR, etc.)
d. Outside providers, such as an insurance agent or a consultant

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3
Q

Whom might a Risk Manager Report to?

A

a. Chief financial officer
b. President or chief operating officer
c. Human resources director
d. Legal counsel

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4
Q

The Reporting Structure May Affect:

A
  1. Risk appetite – (legal - risk averse/ marketing - risk tolerant)
  2. Focus– (legal - compliance and insurance, while human resources - people‐ oriented, )
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5
Q

What Does a Risk Manager Do?

A

A. implement and manage an organization’s risk management program

  1. risk identification,
  2. analysis,
  3. control,
  4. financing
  5. administration techniques,
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6
Q

What Does a Risk Manager Do? Responsibilities

A
  1. Developing risk management policies and procedures
  2. Claims and litigation management
  3. Risk financing / transfer and retention
  4. Contract and lease reviews
  5. Manage risk management team
  6. Overseeing safety training and loss control programs
  7. Accident investigation
  8. Risk Management Information System (RMIS)
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7
Q

What Does a Risk Manager Do? Types of Risk Managers

A
  1. Strategic risk managers
  2. Risk and insurance managers
  3. Credit risk managers
  4. Financial risk managers
  5. Technology risk managers
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8
Q

What are the 4 skills of a Risk Manager

A
  1. Technical Skills
  2. Soft Skills
  3. Leadership Skills
  4. Managerial Skills
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9
Q

Skills of a Risk Manager? What are the Soft Skills?

A

1. Emotional intelligence

2. Diplomacy

3. Facilitation

4. Communication

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10
Q

Skills of a Risk Manager - Technical Skills

A

1. Identifying risks

2. Analyzing losses and exposures

3. Selecting and implementing appropriate safety and loss control programs

4. Managing claims and investigations

5. Managing the organization’s insurance program

6. Reviewing contracts for risk‐related implications

7. Accounting and finance

8. Ensuring compliance with regulations

9. Managing relationship between the industry and the organization

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11
Q

Skills of a Risk Manager - Leadership Skills

A
  • *1. Level‐headed/objective in a crisis**
  • *2. Proactive**
  • *3. Accepts responsibility**
  • *4. Solution‐minded**
  • *5. Innovative and inquisitive**
  • *6. Motivational**
  • *7. Trustworthy**
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12
Q

Skills of a Risk Manager - Managerial Skills

A

1. Policy and strategy development and implementation

2. General management and

3. project management

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13
Q

What makes a Risk Manager Effective? Three Things

A
  1. Knowledgeable.
  2. Access to tools and expertise.
  3. Empowered to make decisions.
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14
Q

Value of an Effective Risk Manager - 3 things

A
  1. Elevating the Importance Of Risk Management
  2. Supporting Measured Risk Taking
  3. Impacting Financial Results
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15
Q

Value of an Effective Risk Manager - Elevating the importance of risk management

A

a. Senior management’s proactive support
b. Creating understanding and acceptance of risk management policies and procedures across the organization
c. What the value risk management discipline brings to the organization
d. positive organizational risk culture towards risk

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16
Q

Value of an Effective Risk Manager - Supporting measured risk‐taking to:

A

a. Achieve business objectives
b. Improve planning and budgeting
c. Reduce frequency and severity of incidents,
d. Improve morale and productivity among the workforce
i. Impact financial results

17
Q

Value of an Effective Risk Manager - Impact Financial Results

A

Impact financial results

1) Reduces claims management and legal costs
2) Optimizes total cost of risk
3) Protects cash flow, assets and financial statements
4) Increases stock prices due to investor confidence
5) Improves competitive position within the market and industry

18
Q

Management Model - POLE

What does POLE Stand for?

A
  • *1. Planning**
  • *2. Organizing**
  • *3. Leading**
  • *4. Evaluating**
19
Q

Planning – determining a course of action

A

1. Identify goals

2. Establish a roadmap – necessary steps to meet the goal

3. Consider economic and resource variables

20
Q

Organizing – the allocation of resources and responsibilities

A

1. Review Resources

2. Assign responsibilities

3. Coordinates activities

21
Q

Leading – motivating people to take action

A
  1. Clear direction and goals
  2. Sound judgment effective decisions
  3. Teamwork and cooperation
  4. Remove obstacles to employee performance
  5. Reward, inspire and help develop potential
  6. Be a positive role model
22
Q

Evaluating – measuring achievement against established goals

A
  1. Benchmarks and performance standards
  2. Compare actual performance to the standards
  3. Corrective action where necessary
  4. Reports and communicate results to senior management
23
Q

What is the Risk Management Process

A
  1. Risk Identification
  2. Risk Analysis
  3. Risk Control
  4. Risk Financing
  5. Risk Administration
24
Q

Implementation of a Risk Management Program

A
  1. Present risk management policy and procedure manual to the organization

2. Communicate risk management goals and objectives throughout the organization

  1. Demonstrate the organization’s commitment to risk management principles
  2. Create an organizational chart or flowchart showing risk management’s interaction with other departments
  3. Establish/ communicate individual responsibilities and accountabilities
  4. Partner with various levels of the organization
25
Q

Implementation of a Risk Management Program - Partner with various levels of the organization

A

a. Executive management
b. Middle management/supervisors
c. All other employees

26
Q

Monitoring a Risk Management Program

A
  1. Evaluate the effectiveness of the program
  2. Review risk management policies and procedures
  3. Report on results, opportunities, threats, successes and recommendations.
  4. Reviews and adjustments
27
Q

Monitoring a Risk Management Program - Evaluate the effectiveness of the program

A

a. incidents and claims
d. Risk financing options with an analysis of the deductible/SIR (self‐insured retention) levels and limits
e. TCOR and allocation
f. Loss trend analysis
g. Contractual issues

28
Q

Monitoring a Risk Management Program - Periodically review risk management policies and procedures

A

a. Changes in operations/acquisitions/divestiture
b. New products and services
c. New laws and regulations
d. Annual quality control

29
Q

Requirements for Long Term Success

A

1) Objectives that align with the needs of the organization
2) Active participant on leadership team
3) Find advocates or influencers
4) Create adaptable processes and approaches
5) Never change for the sake of change
6) Select appropriate technology
7) Seek continued professional development

Practice of Risk Management (7 decks)

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