Risk Management Outsourcing
What is Risk Management Outsourcing?
Risk Management Outsourcing is where a company utilizes external resources of a specialized purpose to perform, augment or enhance the risk management function. In an outsource relationship, a company seeks to minimize time spent on the implementation of the risk management function or the risk management function may need improvement to be directly correlated with its risks.
Why Outsource the Risk Management function?
You may need:
- An interim risk manager to replace an outgoing risk manager as a result of transition?
- A higher level of risk management expertise and broader risk management skills?
- Access to broader knowledge of insurance markets and brokerage community?
- Expertise not currently available in-house, e.g., Wrap-Up Insurance Program experience?
- To reduce overloading the risk management department or finance department staff?
- More flexibility of services, only used on as-needed basis, not full time employment?
- Objective risk management expertise with no conflict of interest, i.e., independent risk management advice with no affiliation with any insurance brokers, carriers, etc.?
C-Risk provides outsourced risk management services. These services are offered on an interim or on an as-needed basis. Risk management outsourcing or “Risk Manager for Hire” services can provide a company with the same level of risk management insight and advice utilized by organizations with a full-time, in-house risk manager on staff on an interim basis to perform this critical function at times when unexpected attrition occurs or when strategically planned as a cost-savings measure. C-Risk can customize a risk management outsourcing plan to offer a variety of solutions for the cost-effective execution of the risk management function.
C-Risk has risk management professionals with practical experience that are knowledgeable and are extremely cognizant of what critical risk management policies, procedures, and processes are required to manage risks because we have been risk managers. We have practical experience in executing the responsibilities of the risk management function on large construction projects and for the development and implementation of insurance and risk management programs for an organization’s ongoing business operations to meet the challenges of current and emerging risks.
Outsourcing the risk management function can reduce costs and improve the quality of a company’s risk management program. C-Risk can assist with the following functions and activities:
- Assist internal staff and external partners to identify and manage risks and exposures.
- Provide independent review of current insurance and risk management programs.
- Assist in evaluating policy clauses, limits, deductibles, and efficacy of general liability insurance coverage, or assist with premises property or builder’s risk insurance policies.
- Develop RFP for insurance broker services and assist with review and selection of most qualified and best value candidate for contract award per client’s requirements.
- Assist with negotiation of service agreement with insurance broker (e.g., stewardship).
- Assist with insurance program renewal strategy per client’s established specification.
- Assist with facilitating insurance renewal process in collaboration with client’s broker.
- Attend scheduled meetings with broker as client’s independent risk management advisor.
- Assist with preparing insurance policy applications and underwriting submissions.
- Review marketing proposals/recommendations from broker prior to binding coverage.
- Review contracts and agreements for critical risk management clauses, terms, and issues.
- Draft contractual risk-transfer, indemnification, and insurance requirement provisions.
- Assist in reviewing administration of claims-related activities for insurance coverages.
- Review systems for tracking and monitoring certificates of insurance (COI) compliance.
- Assist client with recruiting process and selection of their risk management staff.
C-Risk can provide risk management outsourcing services on an interim basis or on a retainer basis as an alternative to a company having a risk manager on staff or as a key strategic advisor to an organization’s risk management team. We tailor our services to meet each organization’s specific needs and requirements.