Rethinking Risk Strategies: The Efficient Risk Frontier and Risk-Bearing Capacity

“We’ve always done it this way” is a familiar expression in business, despite the constant stream of industries and companies in which significant changes in thinking and approach upend what corporate leaders widely accept as timeless best practices. It’s all too easy to reel off a long list of corporate titans that once dominated sectors but are now viewed as anachronisms for failing to keep up with the global economy and rapidly transforming marketplaces.

As ever-more-sophisticated data analysis tools become available to a new generation of risk managers who refuse to accept the “we’ve always done it this way” justification, a more effective approach to risk management is emerging. It centers on examining and managing corporate risks through an entirely different framework, protecting the viability of organizations as they support competition and growth within the evolving global economy.

It begins by considering what has traditionally been seen as risk management and insurance, not as an unavoidable operating expense but as an integral capital component of management strategies and decision-making. The approach uses proven tools and philosophies to examine, shape, and structure strategies that create competitive advantages and enhance an organization’s ability to achieve its growth objectives.

Click here to read the full article, first published by IRMI.

The above information does not constitute advice. Always contact your insurance broker or trusted advisor for insurance-related questions.