The Risk Management Certification Program

A Certified Risk Manager
     It is vitally important that any organization, industrial complex, or business have a well-trained, Certified Risk Manager on staff. A well-trained Certified Risk Manager that will constantly monitor, identify, analyze, evaluate, and treat loss exposures and monitor risk control and financial resources to mitigate the adverse effects of loss.

     The results of a trained and Certified Risk Manager will be able to identify risks that result from such exposure as:
     • Financial Risks such as cost of claims and liability judgments
     • Operational Risks such as labor strikes
     • Perimeter Risks that include weather or political change
     • Strategic Risks including management changes or loss of
        reputation.

     The well-trained Certified Risk Manager will understand the difference between “Probable” and “Possible” risk scenarios. Then be able to expand the province of risk management to define risk as anything that can prevent the organization from achieving its objectives and profitability.

     Although accidental losses are unforeseen and unplanned, a well-trained Certified Risk Manager will develop methods to mitigate and make such events more predictable. The more predictable an event, the less risk is involved since the occurrence can be prevented or mitigated; at minimum, expenses can be estimated and budgeted. This process makes the loss more predictable and is at the core of insurance programs.

      Any Risk Management Program starts with a well-trained Certified Risk Management staff that is creative and well versed in formulating and evaluating the cost of a risk occurrence.

COST OF RISK OCCURRENCES
     The cost of Risk is comprised of:
     • Retained Losses - Deductibles, Retention, or Exclusions
     • Net Insurance Proceeds
     • Cost for Loss Control Activities
     • Claim Management Expense
     • Administrative Cost to Manage the Program

     The benefits of having a Certified Risk Management Program will result in overall savings to the organization when evaluating the risk components. Any risk occurrence may increase or decrease in cost when considered individually or by division in a specific time frame.

RISK LOSS EXPOSURES
     Types of Loss Exposures within the province of risk management will include:
     • Property - Real & Personnel, Tangible & Intangible
     • Net Income - Reduction in Revenue or Increase in Expense.
        can be due to loss of Property (yours or suppliers, or
        customers) or loss due to Civil or Statutory fines and
        judgments, or by loss of Key Personnel
     • Liability - Civil and Statutory (Torts, Statutory Workers
        Compensation, EPA, and other administrative laws)
     • Personnel - Through Death, Disability, or Retirement Key
        Personnel or catastrophic loss to many employees.

DEVELOPMENT OF RISK STRATEGIES
     The well-trained Certified Risk Manager will be able to develop sound and realistic strategies that will involve a host of identified organization’s identified risk areas. These will include the following, but not be limited to:

Elements of Loss Expense
     • Actual damages to physical assets to repair or replace.
     • Increase in expenses or reduction of revenue due to loss.
     • Cost of investigation, legal fees, fines, and awarded judgments.
     • Loss of worker productivity and adverse publicity and public
        opinion.
     • Higher potential insurance premiums.
     • Payments made due to the death, disability, or resignation of
        employees.

Risk Control Techniques
     • Avoidance of activities that cause loss.
     • Reduction of the frequency of loss - risk prevention.
     • Reduction of the severity of loss - risk reduction.
     • Contractual transfer of responsibility for loss occurrence.

Risk Financing Techniques
     • Retention of losses either by design or omission.
     • Borrowing of funds or use of bonds or use of other forms of
        capital
     • Contractual non-insurance transfer of responsibility for loss
        payment.
     • Insurance transfer to a non-owned insurance company when
        and if the exposure is insurable and the cost is not prohibitive.

RISK CERTIFICATION PROGRAM
     The GC International Risk Management Certification Program is designed to train the individual in all aspects of Risk Assessment and Management.
     It is a 6-week program designed for the Risk Management student to study and conduct classes online.
     The Risk Management Program comes with:
     • Risk Management Book
     • Study Materials
     • Chapter Quizzes
     • One on One with the instructor
     • Advanced course offerings in risk area specialization.