ERM News - RIMS Reports Total Cost of Risk Increases 5% Since 2012
The Risk and Insurance Management Society (RIMS) Reports Total Cost of Risk Increases 5% Since 2012.
On July 29, 2103 the Risk and Insurance Management Society (RIMS) reports Total Cost of Risk Increases 5% since 2012. A key finding of The 2013 RIMS Benchmark Survey, released this month, was that the average total cost of risk (TCOR) for all companies increased 5%, from $10.19 per $1,000 of revenue to $10.70 per $1,000 of revenue – the result of hard market conditions.
Companies with advanced enterprise risk programs are proving to have an advantage, said Carol Fox, director for strategic and enterprise risk practice for RIMS. "We found a correlation in a study we did a number of years ago, that companies with better ERM programs had better credit ratings. So it's not just the insurance piece, but making the organization more efficient overall and protecting the value of the organization."