CHAD TISONIK, CSP, CHCM
Associate Vice President, HNI
Most businesses never consider their Total Cost of Risk as a driver of profit. First, you may not be too sure how to calculate it. Second, the number may not be understandable or worse yet, you may define it as solely your insurance premium. Whatever your understanding may be, it may be a good time to refine your beliefs. Controlling your cost of risk will help make you nimble in your marketplace. Failure to control it will send a shiver through your entire organization.
Def: Total cost of Risk is the Quantifiable costs related to the Risk Management function.
How does this number affect management decision making?
What goes into a TCOR calculation?
Risk related costs
Post Loss costs
Leaders who get it have recognized that attention to risk beyond premium can take their organization to an entirely new level. Costs can be reduced much more than a negotiated reduction in insurance premium. These leaders are using their Insurance Advisor as a valued team member in concert with their CPA and Attorney. By working with an advisor that has a team of experts who knows your business, your industry and your employees, you put yourself in a position of growth and comfort.