News 

New RIMS Study Links ERM to Higher Credit Ratings

11/19/2008

RIMS and LogicManager have published the first in-depth study on ERM practices—RIMS State of ERM Report 2008. The report substantiates the value of ERM for organizations of all types and indicates that companies that have greater risk management and ERM maturity levels enjoy higher credit ratings. In addition to key findings, RIMS State of ERM Report 2008 uniquely outlines priorities for best practice criteria that organizations may use to improve ERM competency.

Conducted from December 2006 to January 2008, corporate risk practitioners from 564 organizations assessed their risk management strategy with RIMS Risk Maturity Model for ERM© (RMM).

Report Key Findings include:

• Organizations that have embraced ERM have realized a concrete advantage in their risk management competency. The study found that 93% of organizations with formalized ERM programs in place make better risk-informed decisions—a recognized competitive advantage over those that do not have an ERM program.
• Organizations that report they have an ERM program in place still fall significantly short of achieving managed or better risk maturity. The study demonstrates that, based on the ERM guidelines presented in RIMS Risk Maturity Model for ERM, only 4% of these companies have achieved a managed or better level of risk management competency in all risk competencies. This suggests that organizations may have a false sense about all that is required for an effective risk management program.
• Data from the study verifies that formalized infrastructures in well-managed ERM programs embody the 68 best practice guidelines for efficient and effective risk management programs as presented in RIMS Risk Maturity Model for ERM.
• The study links ERM to better business performance. There is a distinct correlation between companies that score higher on RIMS Risk Maturity assessment and companies that possess higher credit ratings. The same is true of low scoring companies that, typically, possess lower credit ratings. Hence, better managed companies in terms of ERM practices benefit from better business performance.

"In order for organizations to capitalize on the strategic and tactical value creation enabled by ERM, management--from the board room to the front line--must play an active role in the risk management process," says Carol A. Fox, ARM, senior director of risk management at Convergys Corporation and chair of RIMS ERM Development Committee whose members, risk practitioners, contributed to the report. "This report identifies fundamental requirements for management to build and maintain a resilient and sustainable organization."

For organizations that want to further develop their current ERM program, or learn how to implement one, RIMS recommends that an important first step is to understand where they stand. RIMS Risk Maturity Model for ERM and the free online Risk Maturity Assessment allows companies to assess their current practices against validated risk competencies and develop an action plan to take your risk management program to the next level. RIMS State of ERM Report 2008 is available for free to risk practitioners who complete an online Risk Maturity Assessment at: http://www.RIMS.org/RMM. Others may purchase the report online.

New Online Business Training Library Available

11/17/2008

RIMS has made available a new library of online courses to help enhance risk practitioner business management and leadership skills. The 50-course collection, developed by Winchester Center for Management Development, a subsidiary of MindEdge, Inc., provides a collection of courses such as communications, finance, leadership, management and strategy, among others. Sessions include interactive exercises, case studies, assessments and focused readings. Completion of select courses earns participants a half continuing education unit for those who require annual or bi-annual continuing education hours and a program certification. Risk practitioners can enroll in the courses at any time in the convenience of their home or office. Fees for many of the courses range between $79 to $95 and can be completed in three to six hours.

"A successful career as a risk management professional requires continuous learning in many disciplines to enhance both technical and soft skills," says Janet Barnes, ARM, member of RIMS board of directors and risk manager for Snohomish County Public Utility District No.1. "MindEdge's online programs offer professionals an easy, convenient and affordable way to further develop the critical skills they need to become successful managers and leaders within their organizations."

For more information about the Winchester Center for Management Development online courses, visit www.RIMS.org/WinchesterCenter.

RIMS Releases On Demand Webinar: ERM Boot Camp

11/14/2008

RIMS releases its first pre-recorded webinar, ERM Boot Camp, hosted by RIMS ERM Development Committee. In this 45-minute webinar, speakers will provide a practical and hands-on approach to ERM with practical examples for implementation from their own organizations. Panelists include Julie Pemberton, manager of enterprise risk management at Chiquita Brands International, Inc.; and Ruth Unks, risk manager at Maricopa County Community College District.

The webinar is $30 for RIMS members; non-members may participate for a fee of $75. For more information, visit www.RIMS.org/ermbootcampwebinar.

Need Help Identifying Inadequately Addressed Risks and Opportunities?

11/10/2008

RIMS ERM Development Committee vice chair to speak at upcoming ERM for the Re/Insurance Industry Conference

Jeffrey Vernor, RIMS ERM Development Committee vice chair and global risk manager at Russell Investment Group, will present "Utilizing the Risk Maturity Model to Benchmark an ERM Program and its Progress" at the ERM for the Re/Insurance Industry Conference taking place December 8-9 in Chicago. In this session, Vernor will discuss how risk practitioners can assess their company's ERM maturity with proven attributes defined in RIMS Risk Maturity Model (RMM), identify inadequately addressed risks and opportunities as well as provide steps boards and CEOs can take to advance ERM throughout their organization.

Other speakers include senior executives from A.M. Best Co., Allianz Global Corporate & Specialty, Conseco Inc., Fitch Insurance Ratings Group, Platinum Re, Travelers Companies Inc., Ultimate Risk Solutions LLC, White Mountains Re Bermuda Ltd., among others.

For more information, visit www.marcusevansbb.com/InsuranceERM.

November Issue of Risk Management Examines Race

11/7/2008

In November, Risk Management examines the racial makeup of the risk and insurance industries and the challenges they face in diversifying their workforces. Read the November issue online at www.RMmagazine.com.

Wall Street Journal Tackles IT Security and Risk Management

10/31/2008

A recent special section in the Wall Street Journal addresses the increasing concerns of risk practitioners in today's cyber-world. The section, titled "IT Security: Risk Management in the Digital Age", includes articles such as "Emerging Cyber Threats" and "Securing the Vault".

The article titled "Paid to Worry" touches on the discipline of risk management, first-hand views on what it's like to be a risk practitioner in today's global business environment and some of the key challenges facing risk professionals. Featured in the article are the perspectives of RIMS president Janice Ochenkowski, who heads up global risk management at real estate and financial services firm Jones Lang LaSalle Incorporated; Wayne Salen, director of risk management at Labor Finders International and member of RIMS board of directors; Pete Fahrenthold, managing director of risk management at Continental Airlines; Deborah Luthi, director of ERM at Matheson Trucking and member of RIMS board of directors; and Nowell Seaman, manager of risk management and insurance services at the University of Saskatchewan and member of RIMS board of directors.

"Holding the Line Against Cyber Liability" was written by publisher and editorial director of RIMS monthly Risk Management magazine, Bill Coffin, and touches on IT and data breaches, as well as cyber liability insurance.

The Wall Street Journal special section will be available online for a limited time. Read the full content from the section online today at: http://online.wsj.com/ad/itsecurity

RIMS and Ernst & Young Launch Risk Insights

10/28/2008

White paper series addresses current issues impacting the risk management profession

RIMS and Ernst & Young present Risk Insights, a series of articles that provide insight into various risk management and insurance-related issues. This first issue, "Proving Your Insurance Claim," focuses on the complexities of proving a company's claim from catastrophic loss. The article explores common elements of the process and offers suggestions for successfully proving claims and expediting the recovery process. Future white papers in the series will cover topics such as "Getting Out From Behind the Desk—The RIMS Professional Growth Model," "Global Property and Business Interruption Claims" and "Enterprise Risk Management—What 'They' Are Not Telling You," among others. The first issue of Risk Insights is available at no cost to RIMS members at www.RIMS.org/RiskInsights.

Benchmark Survey: Soft Markert Continues Through Third Quarter

10/23/2008

Two major hurricanes and a global credit crunch were not enough to derail the relentless soft commercial insurance market in the third quarter, according to RIMS Benchmark Survey™. However, lower insurance industry net income may signal a coming turn in the insurance pricing cycle. To read the complete release, click here.

RIMS Endorses NY Insurance Superintendent's Policy on Contract Certainty

10/21/2008

RIMS encourages other states to follow New York's lead
The Risk and Insurance Management Society, Inc. (RIMS) commends New York State Insurance Department Superintendent Eric Dinallo for asserting a strict policy on contract certainty for brokers and insurers operating in-state, calling for 90 percent of cases to achieve contract certainty within 30 days of inception and enforcing that service providers are in compliance within the next 12 months.

Contract certainty is an issue at the heart of customer service deficiencies on the part of brokers and insurers, according to the risk management community as represented by RIMS, the largest body of risk practitioners and commercial insurance buyers. RIMS is grateful to Superintendent Dinallo for taking the necessary steps to tackle the issue and hopes that providers will work speedily and aggressively to comply.

RIMS is eager to learn the next steps for the program, particularly how the New York Insurance Department intends to measure compliance and what penalties non-compliant companies can expect to face. RIMS expects that other state insurance offices will also take the initiative to reform the insurance placement process or, at the minimum, providers themselves will take steps to lead the process internally. The Society is prepared to offer guidance to those service providers seeking the buyer perspective as they are developing measures for meeting the contract certainty requirements. RIMS also urges an evaluation program whereby clients would provide feedback on whether providers meet, exceed or fall short of expectations.

RIMS Perspective: A History on Contract Certainty
For many years, risk professionals have voiced increasing concerns about the lack of responsiveness and quality of services offered by insurance providers. This prompted RIMS, in 2005, to develop a Quality Program to improve the service and delivery of insurance-related products to buyers.

Contract certainty is a core part of RIMS Quality Program. Among the tools developed to aid risk managers in the process are the Quality Guidelines for Performance Expectations—28 principles that focus on the main aspects of effective relationship—and insurance program-management. RIMS also launched a Quality Forum, an annual meeting convening risk practitioners and CEOs and other top executives from the largest brokers and insurers, to discuss quality improvement in the insurance placement process. Contract certainly has been at the forefront of the Forum's agenda for the past three years. The dialogue proved to advance providers' understanding of the issue from the buyer's perspective and even, in some cases, has allowed some companies to develop internal programs to expedite the insurance placement process. Currently, RIMS Quality Guidelines are being updated to a format that can be customized to each user's needs.

RIMS Quality Guidelines for Performance Expectations may be accessed at: http://www.rims.org/resources/QualityProgram/Documents/QIP_Guidelines_ONLINE.pdf. More information on RIMS Quality Program may be found at www.RIMS.org/Quality.