Magazine article Risk Management

Risk Manager's Role to Be Redefined by the Next Century, Speakers Maintain

Magazine article Risk Management

Risk Manager's Role to Be Redefined by the Next Century, Speakers Maintain

Article excerpt

Risk Manager's Role To Be Redefined by the Next Century, Speakers Maintain Members of Canada's risk management community put on cowboy hats and headed across prairies and the Rocky Mountains September 10-13 to Calgary for the annual Canadian RIMS conference. "Risk Management in Motion" gave the more than 350 attendees an opportunity to speculate on where they are headed in the near and distant future.

It also gave Canada's risk management community the opportunity to present its annual awards. The Don Stuart Award, which recognizes an extraordinary contribution to the field of risk management, was given to J. Allan Swifte, a property and insurance manager at Manitoba Hydro. Colin Beardmore, risk manager for British Columbia Telephone, was awarded the Canadian Education Award for the highest grades in risk management courses.

The opening session at the conference, called "Twenty-First Century Risk Management," had panelists speculating on what the state of the profession will be at the turn of the century. Felix Kloman, principal & vice president of Tillinghast in Stanford, CT, said the issues of greatest concern to risk managers in the coming years will be those concerning the environment and employee substance abuse.

He also said the role of risk management would be completely redefined, with an emphasis more on risk assessment and risk control and less on risk financing. "The key ingredient in the future is to assume more of the risk in a society that has more risk," he said. "It's a psychological rethinking of how we approach risk. We have to learn to live with risks more intelligently."

In addition, Mr. Kloman said he foresees single-parent and group captives along with other forms of self-insurance growing to command more than 50 percent of the total commercial insurance market within the next five to seven years. "Most companies buy too much insurance, and most insurance companies buy too much reinsurance. Companies will be looking more seriously as to the degree that they need insurance," he said.

The panelist envisioned the risk manager of the future as having a larger staff involved in increasingly difficult problems, solving complex risks and reporting to the CEO rather than to a financial officer. Like Mr. Kloman, panelists also said that the discipline would see more emphasis placed on loss prevention and control than on insurance buying and risk financing. …

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