The Zurich Insurance Group found in their “Risk Management In a Time of Uncertainty” report that a shocking number of business organizations still do not have a proactive risk management corporate strategy, but are instead reactive.
A staggering two-thirds of executives surveyed describe their company’s risk strategy as basic or reactive. Not surprising, the study found that companies with a dedicated Chief Risk Officer (CRO) fared better in every single risk department; information security, regulatory compliance, and loss.
Of course only mid to large size companies have the luxury of employing a full time CRO. One solution smaller companies are exploring is outsourcing the essential vendor management CRO functions to a 3rd party firm.
An outside firm that manages vendor insurance risk issues could attain many of the same results an in-house CRO would at a larger organization.
Simply by outsourcing the function of collecting and reviewing contractor insurance paperwork would go a long way to proactively screening contractors to ensure they meet your contract requirements.