Total Cost of Risk

Total Cost of Risk (TCOR) is the combined cost of all risk management activities.  TCOR should include the cost to identify, assess, mitigate and monitor risk. The table below is based on the Five Steps of The Risk Management Process developed by The National Alliance for Insurance Education & Research. The table shows some risk management activities and the cost items associated with them.

Total Cost of Risk (TCOR) Table Total Cost of Risk (TCOR) Table

Below is the list of risk management web-based applications included with ChancesR®:

The chart below shows insurance premiums from a large manufacturer that started operations in 1996 and has maintained a sustainable sales growth since. Through the years, the company has subcontracted and outsourced most of its non-core operating activities, and hired hundreds of contractors to work on expansion projects. As a result of numerous third-party liability claims involving  uninsured and underinsured vendors, insurance premiums started going up, until the company implemented a new contractual risk management program, and started using INSIGHT’s products and services.

Insurance Program-1996-2013