In these challenging economic times, having a lower TCoR can not only give a company a competitive edge, but also improve its bottom line by affording it the ability to pursue opportunities their peers may not be able to.
We often speak of the importance for senior leaders to have the transparency of the risks their organization faces in order to devise the strategies needed to manage them. The first step to obtaining such transparency is to have the tools and information necessary in order to not only find a solution, but ensure that such solution is sustainable. Knowing your organization’s Total Cost of Risk is, perhaps, one of the most, if not the most important tool the company leadership can have, as it will give them the ability to set up a framework for measuring and tracking it year over year.
As a risk advisor, The ALS Group, has been advocating the use of TCoR as a metric for all companies, regardless of size and industry. We take TCoR seriously and use it often in our risk advisory practice.
This article, “Total Cost of Risk (TCoR) – Overview”, is the first part of an in-depth series of articles that will help senior leaders understand what the total cost of their business’ risk and how TCoR affects financial strength of their business.
Download your copy of Total Cost of Risk (TCoR) – Overview below:
If you need more information on your company’s Total Cost of Risk, need help with any risk or insurance related issues, or are interested in a Risk Management Assessment (“RMA”) please contact Albert Sica, Managing Principal, at 732.395.4251 or asica@thealsgroup.com.