Risk managers have long relied on measuring total cost of risk (TCOR) to benchmark against peers and to aid insurance purchasing decisions. Although C-suite and other senior executives expect risk managers to make greater use of analytics, many do not seem to place the same strategic value on TCOR as risk managers do.
To assist risk managers in bridging this gap and making greater strategic use of risk analytics, including TCOR, Marsh will host a one-hour webcast on Wednesday, May 23 at 11 a.m. EST: “Beyond TCOR: Harnessing Risk Data and Analytics.”
More than two-thirds (68 percent) of risk managers use TCOR measurements, according to Marsh’s 2012 Excellence in Risk Management survey. But many C-suite respondents did not seem to be aware of this: only 49 percent said that their companies measure TCOR. Even in firms where C-suite respondents understand that TCOR is being measured, they show little awareness of what goes into the calculation.
“Despite this perception gap, TCOR still provides a meaningful way to measure the effectiveness of a company’s risk management and insurance strategies,” said Claude Yoder, Global Head of Analytics at Marsh. “However, TCOR can be expressed more strategically—such as by expanding its scope to consider volatility—which can provide greater insight for strategic decision-making. Senior executives increasingly expect risk managers to provide better quantification and analysis on risk management. The effective use of data and analytics is one of the keys to making that happen.”
Mr. Yoder will be joined on the panel by Dan Aronson, a managing director in Marsh's Casualty Practice; Ben Fidlow, National Practice Leader of Marsh Business Analytics; and Tom Quigley, U.S. Leader of Marsh’s Communications, Media, & Technology Practice.
Brian Elowe, a managing director in Marsh’s Global Risk Management division, will moderate the panel.
Register for the Webcast.