Risk Management

Founded in January of 1954, Risk Management is a monthly magazine that features news and industry analysis for corporate risk managers. The magazine has a circulation of 16,000 readers and is published by the Risk and Insurance Management Society Inc. Morgan O'Rourke is Editor-in-Chief. Jared Wade is Editor. Bill Coffin is Publisher/Editorial Director.

Articles from Vol. 42, No. 7, July

AIRMIC and the Art of Risk Management
The Association of Insurance and Risk Managers in Industry and Commerce (AIRMIC) in the United Kingdom has been transformed into one of the industry's most important organizations. This heightened status was reflected at AIRMIC's annual conference, held...
A New Realm of Risk Management
With an eye toward managing costs in all areas and increasing profitability, businesses are taking on a broader array of risks. At a number of companies, this translates into an expansion of the corporate risk management function and adds challenges...
A Rebirth of Risk Management
Over the last ten years, U.S. business has undergone dramatic functional and financial changes. As a result, companies now are stronger and better able to compete in world markets. Achieving these results, however, has required them to get all aspects...
A Rebirth of Risk Management: In the "New Economy," Five Major Forces of Change Are Influencing the Role Risk Management Will Play in Tomorrow's Business Environment
Over the last ten years, U.S. business has undergone dramatic functional and financial changes. As a result, companies now are stronger and better able to compete in world markets. Achieving these results, however, has required them to get all aspects...
Are Regulations Choking Business Growth?
Exorbitant punitive damages in products liability cases... extraordinarily complex and expensive environmental and safety regulations that may or may not actually reduce risks...employment liability laws that greatly complicate an employer's efforts...
A Strategic Approach to Risk Financing
We were visiting the chief financial officer of a major corporation when he got word that his company had just lost $50 million due to disappointing sales from a new product. He was concerned about the loss, but he and the other senior managers had taken...
A Strategic Approach to Risk Financing: A Solid Strategic Risk Financing Program Provides a Company with More Control over Its Insurance Program at a Lower Cost
We were visiting the chief financial officer of a major corporation when he got word that his company had just lost $50 million due to disappointing sales from a new product. He was concerned about the loss, but he and the other senior managers had taken...
Brokers at the Helm: Navigating the Risk Financing Frontier
As the risk financing needs of Fortune 1000 companies become increasingly sophisticated and dependent on capital markets, questions surface about the ability of most brokers to cope with change. Some brokers will falter in this environment. But for others,...
Currency Exposures: Lessons Learned in Mexico
Major and continuous devaluations of a nation's currency have long been a reality of the global economy, with the recent peso crisis in Mexico among the more newsworthy. These realignments of international monetary parity present multinational risk managers...
Derivatives: Beyond the Rhetoric
Over the last few years, derivatives have been a central topic of discussion in the business community. Some observers have demanded increased regulation of these markets. Others, victims of poor speculation, have the embarrassing task of revealing severe...
Derivatives beyond the Rhetoric: Although Discussions of Derivatives Have Focused on Huge Losses, These Tools Can Actually Help Clarify Risk Exposures and Enhance Financial Profiles
Over the last few years, derivatives have been a central topic of discussion in the business community. Some observers have demanded increased regulation of these markets. Others, victims of poor speculation, have the embarrassing task of revealing severe...
"Derivatives Traders Exceed Authority"; "Major Financial Institution Bankrupt"
YES, THESE COULD BE THE FAMILIAR headlines of 1995, striking fear in the hearts of investors. However, they could also be headlines from 21 years ago when in 1974, Franklin National Bank went under mostly as a result of unauthorized foreign exchange...
Hands-On Risk Management Pays Off
While some firms seek short-term savings by outsourcing common risk management functions, others believe it is best to maintain as much control as possible. At U.S. Holdings, a private company with headquarters in Medley, Florida, executive vice president...
InFinite Risk Alternatives
Finite risk insurance is a common risk financing strategy for large corporations that self-insure high levels of risk. The premise of finite risk is a recognition by the insured that it will pay majority of its losses over time. However, in the has favorable...
Managing Toy Risk - No Job for Kids
Insurance companies perceive toys as a dangerous and risky business because "juries are frequently sympathetic toward infants and children," says John Pinner, assistant treasurer of Mattel, Inc. in Segundo, California, and head of its risk management...
Monitor, Measure and Control: The Derivative Mantra
Derivatives have been cited as the reason for corporate and institutional losses of an unprecedented magnitude. In general, derivatives are financial instruments that "derive" value from some underlying index such as a commodity (e.g., the price of oil),...
Partnering for Success
In an economy characterized by intense competition, many corporations are developing partnerships with other firms in an effort to enhance business results. GAB Robins, a new company that builds on the global strengths of its sister companies in The...
Proactively Managing Workplace Disability
Workers' compensation represents a major cost for many corporations. For Liaison, Inc., a firm that provides specialized disability management programs for reducing workers' compensation, group health and general liability claims, achieving cost reductions...
Shopping the D&O Market
Despite strong demand, excess capacity for directors' and officers' liability insurance and strong insurer competition (known as a "soft" market in insurance circles) continue to make the mid-1990s a perfectly pillowy time for most D&O purchasers....
The Advantages of Benefits Outsourcing
As companies continue to scrutinize their production costs under a corporate microscope, one area ripe for attention is the human resources (HR) function. Because people-related expenses average about 70 percent of production costs, it makes sense to...
The Best Defense against Class-Action Lawsuits
Although this scenario is hypothetical, cases like it occur with alarming frequency. There has been a dramatic increase in litigation against corporate board members. In these lawsuits, shareholders allege that board members or corporate officers misled...
The Convergence of Risk: Companies That Regard All Their Risks as a Totality Can Better Make Decisions to Protect Themselves from Risk
Aparadigm shift toward a more holistic view of corporate risk is occurring at a few progressive companies that are eliminating the barriers between their business, credit and fortuitous risks. Although these developments are at a nascent stage, they...
Viewing Risk from the Top: Success in Today's Challenging Business Environment Requires Executives Who Can Effectively Tackle Risk
Partnering for Success In an economy characterized by intense competition, many corporations are developing partnerships with other firms in an effort to enhance business results. GAB Robins, a new company that builds on the global strengths of its...