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Definition of Risk ManagementDefinition of Risk Management
Risk Management is the process of making and implementing decisions
that will minimize the adverse effects of accidental loss on an organization.
Today’s Objectives
TodayToday’’s s ObjectivesObjectives
•• Discuss the 5 steps of the RM ProcessDiscuss the 5 steps of the RM Process• Review in detail the first 2 stepsReview in detail the first 2 steps•• Review Property, GL, Auto & WC RisksReview Property, GL, Auto & WC Risks•• General Claims ManagementGeneral Claims Management•• Resources to take homeResources to take home
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RISKRISKMANAGEMENTMANAGEMENT
PROCESSPROCESS
STEP 1STEP 1IDENTIFY &IDENTIFY &
ANALYZEANALYZE STEP 2STEP 2ALTERNATIVESALTERNATIVES
STEP 3STEP 3SELECTSELECT
STEP 4STEP 4IMPLEMENTIMPLEMENT
STEP 5STEP 5MONITORMONITOR
Today’s Objectives
TodayToday’’s s ObjectivesObjectives
•• Discuss the 5 steps of the RM ProcessDiscuss the 5 steps of the RM Process•• Review in detail the first 2 stepsReview in detail the first 2 steps•• Review Property, GL, Auto & WC RisksReview Property, GL, Auto & WC Risks•• General Claims ManagementGeneral Claims Management•• Resources to take homeResources to take home
RISKRISKMANAGEMENTMANAGEMENT
PROCESSPROCESS
STEP 1STEP 1IDENTIFY &IDENTIFY &
ANALYZEANALYZE
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IdentificationIdentification AnalysisAnalysis
IDENTIFY & ANALYZEIDENTIFY & ANALYZESTEP 1
Types of ExposureMethods of
Identifying Exposures
Methods of IdentifyingMethods of IdentifyingLoss ExposuresLoss Exposures
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TypesTypes
OfOf
ExposuresExposures
Auto ExposuresAuto Exposures
Identification Identification AnalysisAnalysis
IDENTIFY & ANALYZEIDENTIFY & ANALYZESTEP 1
SignificanceOrganizational
Objectives
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Organizational ObjectivesOrganizational Objectives
Identifying and Analyzing Loss ExposureIdentifying and Analyzing Loss ExposureSTEP 1STEP 1
Identification Analysis
Types of Exposure
Methods ofIdentifying Exposures
OrganizationalObjectives
Significance
•• Loss FrequencyLoss Frequency–– Higher frequency lower Higher frequency lower
severityseverity
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LossLoss Severity Severity Higher Severity lower frequencyHigher Severity lower frequency
RISKRISKMANAGEMENTMANAGEMENT
PROCESSPROCESS
STEP 2STEP 2ALTERNATIVESALTERNATIVES
Risk Control to Stop/Reduce Losses Risk Financing to Pay Losses
AvoidanceLoss PreventionLoss Reduction
SeparationDuplication
Contractual Transfer
EXAMINE ALTERNATIVESEXAMINE ALTERNATIVESSTEP 2
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Risk Control StrategiesRisk Control Strategies(to stop or reduce losses)(to stop or reduce losses)
Risk Control to Stop/Reduce Losses Risk Financing to Pay Losses
Retention Transfer
EXAMINE ALTERNATIVESEXAMINE ALTERNATIVESSTEP 2STEP 2
Risk RetentionRisk Retention
•• Current expensing of lossesCurrent expensing of losses– e.g. Small theft claims
•• Budgeted ReservesBudgeted Reserves– e.g. Physical damage to older vehicles
•• BorrowingBorrowing– e.g. Large deductible and large building
loss
•• Captive InsurerCaptive Insurer– e.g. Risk Pooling Trust share losses
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EXAMININGEXAMINING ALTERNATIVEALTERNATIVE RM RM TECHNIQUESTECHNIQUESSTEP 2STEP 2
Risk Control to stop losses Risk Financing to Pay Losses
Retention Transfer
Risk TransferRisk Transfer
• Contractual Transfer– Hold Harmless
– Certificate of Insurance
– Additional Insured (e.g. maintenance vendors, security,
food service, snow removal, all construction and tree trimming)
•• Commercial InsuranceCommercial Insurance– Know Your Coverage's
– Know Your Exclusions
RISKRISKMANAGEMENTMANAGEMENT
PROCESSPROCESS
STEP 1STEP 1IDENTIFY &IDENTIFY &
ANALYZEANALYZE STEP 2STEP 2ALTERNATIVESALTERNATIVES
STEP 3STEP 3SELECTSELECT
STEP 4STEP 4IMPLEMENTIMPLEMENT
STEP 5STEP 5MONITORMONITOR
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Today’s Objectives
TodayToday’’s s ObjectivesObjectives
• Discuss the 5 steps of the RM Process• Review in detail the first 2 steps• Review Property, GL, Auto & WC Risks• General Claims Management• Resources to take home
Property ExposuresProperty Exposures(Coverage)(Coverage)
•• ContentsContents: Blanket Values v. Scheduled Values•• Replacement Cost Coverage:Replacement Cost Coverage: Up to the limit•• Fine Arts:Fine Arts: Limits•• Business InterruptionBusiness Interruption:: Limits•• Crime:Crime: Limits•• Building Construction:Building Construction: Subrogation waiver
Property Property (Causes of Loss)(Causes of Loss)
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PropertyProperty(Risk Control Techniques)(Risk Control Techniques)
VehiclesVehicles(Coverage Concerns)(Coverage Concerns)
VehiclesVehicles(Common Causes of Loss)(Common Causes of Loss)
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VehiclesVehicles(Risk Control Techniques)(Risk Control Techniques)
• MVR Checks
• Van Elimination Plan
• Pool arrangements use similar vehicles
• Driver Evaluation
• Fleet administrator
• Target zero losses
• Driver Training
LossesLosses
WorkersWorkers’’ CompensationCompensationUnderwriters ConcernsUnderwriters Concerns
• Payroll properly coded
• Volunteer endorsement
WorkersWorkers’’ CompensationCompensationCommon Causes of LossCommon Causes of Loss
• Slip, trip and fall
• Struck by/or against
• Lifting/back injuries
• Auto accidents
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WorkersWorkers’’ CompensationCompensationRisk ControlRisk Control
• Inspections
• Early Reporting
• Direction of care
• Alternative job duties/Return to Work
• Coordination with the Adjuster
• Claim Administrator
• Focused Education
RMS Team
General LiabilityUW Concerns
• Understanding Ministry
• Update changes in Ministry
• Directors and Officers
• Professional Liability
General LiabilityCauses of Loss
• Housekeeping
• Contractual Transfer
• Employment Practices
• Slip and Fall
• Sexual Misconduct
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General LiabilityRM Techniques
• Inspections
• Contractual Reviews
• Experience Legal Counsel
• Education and Training “hot topics”
• Early Report
Basic Claims ManagementBasic Claims Management
• Early Reporting (over report)• Skilled Legal Counsel (e.g. EPL risks,
sexual misconduct, contract law etc.)• Direction of Care• Return to Work• Follow up with injured workers• Inspections• Scene Photographs• Monitoring Claims
Today’s Objectives
TodayToday’’s s ObjectivesObjectives
• Discuss the 5 steps of the RM Process• Review in detail the first 2 steps• Review Property, GL, Auto & WC Risks• General Claims Management• Resources to take home
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ExhibitsExhibits
• Certificates
• Self Inspections
• Exposure Analysis
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Today’s Objectives
TodayToday’’s s ObjectivesObjectives
•• Discuss the 5 steps of the RM ProcessDiscuss the 5 steps of the RM Process•• Review in detail the first 2 stepsReview in detail the first 2 steps•• Review Property, GL, Auto & WC RisksReview Property, GL, Auto & WC Risks•• General Claims ManagementGeneral Claims Management•• Resources to take homeResources to take home
Low Cost/No CostLow Cost/No CostRisk Management TechniquesRisk Management Techniques
• Early Reporting of Claims• Contract Reviews• Proper Ladders• Skilled Legal Counsel• Proper use of Additional Insured• Know Your Coverage’s• Inspections• Claims Administrator
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Thank You!
Roger DuffieldRoger Duffield
Contact Information
Email: [email protected]
Phone: 800-807-0100 Ext. 2542
