IRMI Update—Issue #140
An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
July 12, 2006
In This Issue
Colleague,
At the annual RIMS conference in April, the results of "Chubb's 2006 Loss
Control Spending Survey" were released. Based on responses from more than 125
risk managers, the survey contained some good news.
-
95% said their organizations would spend the same amount or more on loss
control in 2006 as they did in 2005.
-
Disaster preparedness, catastrophe management, and business continuation
were at the top of the list of areas where spending was to be increased.
-
Corporate governance was also at the top of the list.
On the one hand, I am relieved that business continuity is a major focus
of the risk management community. Disaster preparedness will pay off in a big
way when an organization is hit by a major natural or man-made disaster. You
don't have to have been a long-time subscriber to IRMI Update to know this is
one of my hot buttons. The work on corporate governance issues is also a good
thing that should reduce the potential for more "management-made" disasters,
such as the one that killed ENRON.
But, on the other hand, seeing the reactionary nature of loss control spending
by corporate America is also disturbing. It reminds me of the old insurance
joke about the blindfolded underwriter racing an auto down a superhighway while
the actuary, looking out the back window, tells him which way to steer. Letting
past events guide our risk management programs will sooner or later cause us
to be blindsided by something that has never happened before.
Are we, as risk professionals, being as proactive as we should be? Or are
we just reacting to what has happened in the past? Is this a problem with the
risk management community, or is the problem in the executive suite? Is senior
management simply opposed to spending on preventative measures in areas without
some precedent for past losses? If the latter, is this because we are not properly
communicating with them about risk? [See reader
responses.]
Registration is open for the 26th IRMI Construction Risk Conference, which
will be in San Diego this fall. View the agenda and speakers
or register at the
special early bird rate.
Thank you for subscribing to IRMI Update and recommending it to your colleagues
in the industry.
Have a great day.
Jack
Jack P. Gibson, CPCU, CRIS, ARM
President
IRMI
Where Is It?—Unfortunately, we don't have a
risk tip for this month because no one sent one in for us to use. Why don't
you send one for the next issue? It's a great way to put yourself and your company
in front of 30,000 risk professionals without paying for an ad in IRMI Update.
To qualify a tip must:
- Be original (i.e., written by you and not published elsewhere)
- Provide practical advice for use in managing or insuring the risks of
businesses (rather than individuals)
- Apply to more than one industry (e.g., should not be applicable only
to contractors)
- Be educational and not self-promoting. Your by-line is your promotion.
- Be the right length. It should be 150 to 300 words
Your Tip will remain on the IRMI.com IRMI Update Web site until we decide to remove it, providing exposure for years to come. Submit your tips.
There are now 812 risk management and insurance articles on IRMI.com. Below
you'll find summaries of some recent additions with links to the articles.
More than 800 professionals have already secured their spot at the 26th IRMI Construction Risk Conference.
Register online and save $125 for this premier symposium in San Diego, October
9–12. Last year's Conference sold out—so register today.
IRMI Update is sent to subscribers by plain text e-mail twice each month.
To initiate your free subscription, use the e-mail registration form.