Moving Beyond Reactive Risk Management

Moving Beyond Reactive Risk Management

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Published August 08, 2013   •   0 minute read

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 to a full-service COI tracking solution would go a long way to proactively screening contractors to ensure they meet your contract requirements. However, using a self-service option can also simplify the process of reviewing documents in-house. 

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