Risk Management Analysis Program


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This is my brochure on my Risk Management Analysis offer.

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Risk Management Analysis Program

  1. 1. Risk Management Analysis Program Rethinking Risk Financing www.kruijsse.eu 1/7 © Bob Kruijsse Risk Management Consulting www.kruijsse.eu
  2. 2. Risk Management Analysis Program Rethinking Risk Financing “Risk Management Analysis is a comprehensive process and perspective for helping companies develop risk management strategies that support the maximization of shareholder wealth. It is an organization-wide process of identifying, quantifying, mitigating, modeling, and financing risk. Although many definitions of quot;riskquot; exist, one that is workable for present purposes is that risk is the uncertainty concerning the occurrence of a loss or other business adversity detrimental to the risk taker.” 2/7 © Bob Kruijsse Risk Management Consulting www.kruijsse.eu
  3. 3. Risk Management Analysis Program Rethinking Risk Financing Bob Kruijsse is pleased to offer the Kruijsse Risk Management Analysis Program (Kmap). This system uses international standards in Risk Mapping combined with the insurance knowledge and specific industry information of each individual customer. Bob Kruijsse’s risk management philosophy consists of proactively planning, implementing, measuring and monitoring risk management practices to minimize and mitigate systemic and idiosyncratic risks inherent in the businesses of our customers. During the first steps of our program we evaluate each business unit for key risks. Utilizing a standard risk categorization system allows comparison among all business units. Such a system groups risks into the following categories: Financial, Human Capital, Legal, Natural, Operational, Political and Technology. Once key risks have been identified, the customer’s staff will be asked to “score” each risk according to the Bob Kruijsse Scoring System (K.S.S.). Risks will be measured using the Bob Kruijsse Scoring System which includes the following dimensions: Probability: How often does the risk event occur? Development: If the risk event occurs, over what period will the impact be felt? Severity: How large could the resulting loss be? The resulting report will help prioritize the key risks the firm should be focusing on. Finally potential risk financing and mitigation strategies should be evaluated. Catastrophic risk simulation should be used to determine the potential impact of risk events on the company’s wellbeing. The final result will be a Risk Management Process which will be started within customer’s organization after the finalization of the Kmap process. The figure below illustrates a Risk Management Process which has effectively supported a number of programs. At the heart of the process lies the risk register/database, containing information about all identified program risks and about the action being taken to control the risks. The information in the register must be dynamic, and must reflect the current status of risks and risk actions. Risk management activities and risk information must move ahead together. The information must not be quot;left on the shelf.quot; 3/7 © Bob Kruijsse Risk Management Consulting www.kruijsse.eu
  4. 4. Risk Management Analysis Program Rethinking Risk Financing This process will allow us to minimalize financial losses by • Risk Avoidance (Eliminating a loss exposure by ceasing or never undertaking an activity that produces the exposure. In making this decision, the organization must weigh the potential value of the activity against the potential loss.), • Noninsurance Transfer (A risk management technique for shifting an organization's potential losses to others. Many alternatives are available that may be less costly than insurance, such as subcontracting part of a project or inserting a hold-harmless agreement in a contract), • Loss Control (Prevention and reduction of losses. An insured, often in consultation with an underwriter or loss control specialist, takes measures to reduce the frequency of losses and to minimize the financial impact or severity of a loss.), • Risk Retention (The planned assumption of risk by an insured through deductibles, policy retentions, or self-insurance. The insured's reason for a risk retention is usually to reduce expenses and improve cash flow, to increase control of claims reserving and claims settlements, or to fund losses that cannot be insured.) and finally, • Insurance Risk Management should become part of an on-going management process, in order to keep risks and therefore unexpected negative financial occurrences under control. 4/7 © Bob Kruijsse Risk Management Consulting www.kruijsse.eu
  5. 5. Risk Management Analysis Program Rethinking Risk Financing Bob Kruijsse Bob Kruijsse has been in the Risk and Insurance business since 1980. During this period he has worked as Risk and Insurance Manager with an international dredging contractor, as Marine and General Insurance Broker, with Insurance Companies in The Netherlands and as a Risk and Insurance Consultant/Manager. For the last 16 years he has been in Poland. He has extensive knowledge of Risk Management having advised many types of corporations on risks and insurances throughout his career. For over 28 years now he has studied the various aspects of risks and how to deal with them. Thanks to this kind of approach he has developed an instinctive feeling for risks and a very practical approach to risk management. He is one of the founding members of the Polish Association of Risk Management POLRISK. He is also a Boardmember of the Dutch-Polish Chamber of Commerce, and has been chairman of the IGCC (International group of Chambers of Commerce in Poland). 5/7 © Bob Kruijsse Risk Management Consulting www.kruijsse.eu
  6. 6. Risk Management Analysis Program Rethinking Risk Financing Basics of the Kmap Project Phase I: Risk Identification Objective: Create a comprehensive list of potential risks facing The customer Actions: 1. Gathering of relevant operational, financial and strategic information; 2. Conduct interviews with key Customer staff; 3. Creating initial risk inventory. Phase II: Risk Ranking Objective: Apply Bob Kruijsse Scoring System to risks identified in Phase I in order to prioritize risks. Actions: 1. Agree on Customer scoring dimensions for Probability, Severity and Development; 2. Discuss Brainstorm Session with the appointed Teamleader from Customer; 3. Questionnaires are prepared for 8 or 9 Participants from Customer staff; 4. Bob Kruijsse team analysis questionnaires; 5. Bob Kruijsse team develops preliminary scores based upon questionnaires; 6. Brainstorm Session; 7. A list of “Priority” risks is created; 8. Bob Kruijsse reviews and discusses scores with Customer Management. Phase III: Data Collection & Modeling Objective: Utilize relevant internal and external data to define the dimensions of priority risks. Actions: 1. Develop loss distributions for individual risks based on loss statistics provided by the Customer; 2. Analyze potential risk portfolios; 3. Conduct catastrophic risk simulations based upon PML or EML (as provided by the Customer); 4. Analysis of existing insurance portfolio as to Bob Kruijsse provided by the Customer. 6/7 © Bob Kruijsse Risk Management Consulting www.kruijsse.eu
  7. 7. Risk Management Analysis Program Rethinking Risk Financing Phase IV: Solutions Objective: Use risk information to determine the optimal risk mitigation and financing strategies. Actions: 1. Run Financial Analysis to test various risk financing strategies under different loss scenarios; 2. Evaluate realistic alternatives given data quality; 3. Setup a Risk Management System for use with the Customer; 4. Approach and discuss with risk partners, as needed; 5. Providing Risk Management System during the year, including but not limited to risk-handling (incl. insurance and non-insurance claims) on behalf of the Customer; 6. Checking of Third Parties Tenant’s Liability policies (including renewal checks); 7. Halfyearly meetings with the Customer board to discuss current Risk Management Issues (or more often if required). Contact: Bob Kruijsse Ul. Konopnickiej 3 05-870 Blonie POLAND www.kruijsse.eu kruijsse@onet.eu Tel.: +48 605 27 37 77 Fax: +48 22 205 04 42 7/7 © Bob Kruijsse Risk Management Consulting www.kruijsse.eu