Developing an analytics framework enables strategic risk managers to better understand their organization’s cost of risk, to quantify the volatility of the risk it’s retaining, and to identify the major drivers of risk. That insight can inform strategic decisions in a number of areas, such as:
- Where to expand and build new properties to limit catastrophe exposures.
- Where and whom to hire and what strategies to implement to reduce workers’ compensation and employment practices liability exposures.
- How to tailor selling strategies and which vendors to work with to limit third-party risk.
From Marsh Global Analytics, Steven Jones examines the benefits of data, analytics, and technology for strategic risk managers.