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RISK MANAGER VS INSURANCE MANAGER

DONE BY, ANCHU ANN THOMAS MOHAMMED SALIH K.B CHANDU SATHYAN AFZAL SHAMS

RISK MANAGER
A risk manager works in finance or insurance. A financial risk manager is responsible for determining what risks are associated with a certain business venture. An insurance risk manager is responsible for determining what risks are associated with insuring individuals, ventures or properties.

Risk Assessment Risk assessment is the process that a risk manager uses to determine the likelihood of loss that's associated with a particular financial process or individual. The financial risks could include the likelihood that a project might fail, how much money could be lost, how likely the company would be to make money from that venture and other similar processes. Risk managers in the insurance field must measure the risk associated with potential losses. This could include the likelihood that a person will get sick, a determination of how much money the insurance company would have to pay when they get sick, and the types of illnesses that they would be most likely to get.

Budgeting
Budgeting is a key component of risk management. Risk managers are often assigned a role in budgeting because they are the ones who can best assess what processes and operations are likely to cause financial trouble for the business. Their role is commonly to define the worst case scenario that a budget may need to accommodate.

Benefits
Risk managers benefit companies by highlighting the liabilities they face on a day to day basis. The ability to see what risks could occur with new ventures is an invaluable tool for managers and business owners who are trying to determine the best path that a business should take. Risk management is also essential in the insurance field because it helps to determine which insurance candidates are high risk and what premiums should be charged to each individual.

Potential
The role of a risk manager can often expand into other responsibilities. In many cases risk managers are brought on to discuss financial processes because they have the ability and training to determine what potential losses and gains can occur from any given process or financial change. It is easy for a risk manager to move into additional financial positions because of their competencies with numbers, formulas and financial assessments. Risk managers in the insurance field can become part of the upper echelons of the corporate world.

ROLE OF RISK MANAGER


It is the Risk Manager's responsibility to assess risk within the organization and proactively recommend ways to minimize the potential for losses. If a loss occurs, the Risk Manager must work with operating staff, the claims adjuster and the insurance company to effectively settle the loss. Detailed records should be maintained so that appropriate analysis of loss history and trends can be undertaken. In order to complete these tasks effectively, the Risk Manager must be able to work with all levels within the organization from the Chief Administrative Officer to the front-line staff. This requires effective negotiating skills, clear communication and excellent people skills. The Risk Manager's role is more effective if there is support from all levels within the organization, particularly the functional heads of the various operations. It is critical that the Risk Manager receive "buy in" from both staff and elected officials in order to obtain the necessary resources to implement an effective risk management program.

By communicating the issues, and possible solutions, in a clear, concise manner, the Risk Manager can build a culture that supports Risk Management objectives. Remember, protecting your organization from risk is much more then simply purchasing an insurance policy. There are many types of risks that are simply not insurable, and that is when proactive risk management is key. The Risk Management Department should actively promote their services within the organization. Make yourselves available to assist in problem solving. Know when to say "No" and when to find creative solutions to enable a project to go ahead by implementing reasonable measures to reduce risk. Work to foster a corporate environment in which the risk management department is routinely consulted on operational issues. It is much easier to implement Risk Management strategies early in the planning stages, rather then try to make changes after the fact, or worse, after a claim has occurred.

As a Risk Manager, it is your responsibility to make sure everyone understands not only your role, but the role they play in managing risk. Here are a few helpful tips: Introduce yourself to management personnel within the various departments. Explain what your department does and what services you can offer to help make their jobs easier.

Make sure that you keep the lines of communication open. This allows you to do proactive risk management by finding out what projects they are involved with early in the planning stage. Review the department's operations and offer to provide training seminars to the staff on risk and insurance related issues in order to reinforce their role in loss control.

Use lessons learned from actual claims to help reinforce loss control with front line staff. The message is clearer when they can see how claims impact the bottom line and how they can make a difference within their daily routines. Try to be a problem solver. No one will come to you for advice if you only create obstacles, instead of providing solutions. Make every effort to enhance your knowledge and skills through professional development.

INSURANCE MANAGER
To stay competitive and to protect the interests of their employees and the business, companies try to make sure that they have minimized the risk of financial loss. This includes keeping an eye on insurance packages of all kinds and related benefits or programs such as flexible spending accounts. Management hires insurance managers to handle the duties related to this objective.

According to the Bureau of Labor Statistics, the primary duty of an insurance manager is to obtain and oversee company insurance or related funds that management uses to cover costs such as disability benefits or lawsuits. The Commonwealth of Virginia describes the responsibilities of insurance managers further, stating that they handle claims, direct information for claimants, supervise claims investigations, review insurance policies, develop insurance procedures and manage insurance data for carriers' reports.

Skills/Abilities
The Bureau of Labor Statistics emphasizes that insurance managers need excellent interpersonal skills because they are team leaders. They also recommend that insurance managers have a broad understanding of the company as a whole so that they have a better idea of what insurance needs the company has, as well as a knowledge of international finance. The Commonwealth of Virgina echoes these sentiments, stating that insurance managers must have the ability to communicate well in both oral and written forms. Both the Bureau of Labor Statistics and the Commonwealth of Virginia state that creative thinking and problem identification and solving are important for insurance managers.

RISK MANAGER Deals with risk in the business.

INSURANCE MANAGER Deals with risks in insurance related matters.

THANKYOU

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