Risk management expenses are on the rise. Find out how you can cut costs without increasing your company’s risk level.
Risk management is a vital part of any business, particularly those with substantial financial resources and confidential information on the line. As a result, its costs quickly pile up and put financial executives in a difficult position: in order to cut costs, they would be letting more risk into the organization.
The Total Cost of Risk, or TCOR, has generally been defined as premiums + retained losses + administrative expenses for insurance purposes, but corporate executives are beginning to rethink this narrow view. Risk management costs should encompass not just what is insurable, but also reputational, supply-chain, and social-media risks as well.
However, by turning to insurance statements, we see that the costs of risk have increased 5% from 2012. As a result, CFOs should begin to consider how to cut those costs while also maintaining appropriate security and meeting compliance regulations, and this CFO eBook can help you do that.
Topics in this CFO eBook include:
- How to measure Total Cost of Risk;
- Why excessive risk management cost cutting is dangerous;
- How to cut bribery-prevention costs;
- The ISO framework for ERP;
- The importance of key risk indicators.