Every Organization is spending money on Risk Management.
This includes the Risk Management Department, time spent training, insurance costs, retained losses(deductibles and uninsured losses), and other indirect costs such as time spent dealing with claim situations. You can probably throw complying with Government Regulation in there as well.
Some questions to consider when dealing with TCOR are:
1. Is one person in charge of coordinating the Risk Management effort in the Organization or is it spread out between departments? If so, is there communication between departments to minimize duplication?
2. Are there goals behind the program or is it on an “as needed” basis?
3. Is the program proactive or reactive?
4. What is the overall perception of Risk Management in the Organization? Is it a “necessary evil” or a valued part of the Organization?
All of these questions need to be considered when looking at managing TCOR and in order to maximize the benefit of the dollars spent on these programs.
How much are you spending on TCOR? What are you doing to maximize the benefit of your Risk Management dollars?