Risk Management Strategy
C-Risk views risk management as a process that follows a structured methodology. We use an integrated or “Holistic” approach to define risk, and our services focus on three key objectives:
1. Identify and quantify risks, develop a risk profile, and formulate a risk management strategy that is in alignment with a client’s specific business model and risk tolerance;
2. Protect a client’s assets by ensuring that the most appropriate contract requirements, insurance policies and endorsements, and risk financing options are in place, and that coverage and limits are adequate for a client’s contractual and operational exposures; and
3. Mitigate a client’s loss exposure and minimize the total cost of risk by providing a client with a holistic risk management solution.
C-Risk provides strategic risk management advisor services to clients for the formation of their insurance and risk management program requirements. We help our clients realign their focus to integrate short-term project management goals with their long-term strategic risk management objectives. This type of integrated approach assists clients in managing an organization’s risks.
What is Holistic Risk Management?
Risk management is the process of strategically planning, organizing, managing and controlling an organization’s business activities to minimize the effects of risk on an organization’s capital, assets and earnings. “Holistic risk management” expands this conventional risk management process to incorporate a broader range of risks, which are critical to an organization. Included in this expanded concept of holistic risk are the strategic, operational, organizational, contractual, financial, hazard, socio-political, and contingency risks. An integrated, holistic risk management approach enables an organization to better identify, evaluate and prioritize its risks and formulate the most appropriate strategies to effectively manage these risks, exposures, and liabilities.
Why Use a Holistic Risk Management Approach?
- To provide a comprehensive identification of an organization’s risks;
- To develop a systematic analysis of an organization’s risks;
- To determine the risk-retention capacity of an organization;
- To evaluate the feasibility of combining various risks into an insurable product, program or other financial arrangement that will mitigate, transfer or hedge these combined risks;
- To promote better strategic decision making and fiscal responsibility; and
- To improve an organization’s earnings, financial stability, and shareholder value.
What is C-Risk’s Role in the Holistic Risk Management Process?
The same basic principles of traditional property and casualty risk management also apply to strategic, operational, organizational, contractual, financial, and socio-political risks. Using a collaborative approach, C-Risk can help a client to identify, evaluate, and select the most appropriate techniques for managing these risks. Unlike insurance brokers, C-Risk does not provide insurance brokerage services or sell insurance. As an independent risk management consulting company, we maintain our objectivity in the insurance procurement and placement process. Our primary focus is to provide a client with objective and pragmatic advice on their risk transfer, risk retention and risk financing alternatives.
Some of C-Risk’s strategic risk management advisory services include:
- Developing and facilitating internal risk management functional teams;
- Identifying risks and exposures by assisting in completing a risk assessment;
- Evaluating the impact of risk from a frequency and severity perspective;
- Determining the maximum risk tolerance (risk retention analysis);
- Developing a comprehensive “risk profile”;
- Evaluating various alternative risk financing techniques;
- Implementing selected techniques by client’s team; and
- Monitoring risks (old and new) to eliminate or mitigate emerging risks.