Back

Best-in-Class Risk Managers are Multilingual

Best-in-Class Risk Managers are Multilingual

Scott Davis

President, National Specialty Group, EPIC Insurance Brokers

Scott Davis

President, National Specialty Group, EPIC Insurance Brokers

  “Every job looks easy when you are not the one doing it.” – Jeffrey Immelt

After working shoulder to shoulder with risk managers for more than twenty-five years, I both have tremendous respect for the importance of their Swiss Army Knife-like roles and find them to be often unsung, often misunderstood and underappreciated.

Recently, risk managers have been measured more by the delta between budget forecasts and the realities of the hard insurance market than their impact on profitability and enterprise value.  While I find focus on insurance spend of little use, I attribute this reality to factors beyond corporate belt tightening: miscommunication and lack of data.


While insurers ground their commercial property lines of business via TIV, replacement costs, and AALs, executives see the world primarily through the lens of finance--almost all their performance indicators are defined by EPS, NOI and FFO, in particular.  Best-in-class risk managers are fluent in both languages and equally as effective in a renewal road show as a presentation to their board of directors.  By combining experience and data, they understand and manage the relationship between risk transfer/retention, profitability and enterprise value.


Here in my adopted home state of Tennessee, a large manufacturer was able to drive down its total cost of risk (mostly via a proactive workers comp strategy) and in turn, reduce the costs of goods manufactured (COGM).  The impact on the bottom line allowed the factory to drive significant improvements in production, profitability, and profile. 


The key take-away here is that aligning with your organization’s most important metrics AND demonstrating the impact are both necessary for the best possible outcome--insurance is the means to the end rather than the end in itself.


While this is straightforward, it’s not simple and the risk managers who do it well are seen as strategic and indispensable...much more than a cost center or line item in a budget.

Best-in-Class Risk Managers are Multilingual

About the author

As President of National Specialties at EPIC Insurance Brokers and Consultant, Scott leads teams that deliver creative and innovative solutions to the Sports & Entertainment, Healthcare, Professional Services, Tech & Life Science, and Risk Reduction Consulting industries.

See how leaders like you are using the Archipelago Risk Data Platform to drive better outcomes:
Get Diagnostic Assessment or Request Software Demo

  “Every job looks easy when you are not the one doing it.” – Jeffrey Immelt

After working shoulder to shoulder with risk managers for more than twenty-five years, I both have tremendous respect for the importance of their Swiss Army Knife-like roles and find them to be often unsung, misunderstood, and underappreciated.

Recently, risk managers have been measured more by the delta between budget forecasts and the realities of the hard insurance market than their impact on profitability and enterprise value.  While I find focus on insurance spend of little use, I attribute this reality to factors beyond corporate belt-tightening: miscommunication and lack of data.

While insurers ground their commercial property lines of business via TIV, replacement costs, and AALs, executives see the world primarily through the lens of finance--almost all their performance indicators are defined by EPS, NOI, and FFO, in particular.  Best-in-class risk managers are fluent in both languages and equally as effective in a renewal roadshow as a presentation to their board of directors.  By combining experience and data, they understand and manage the relationship between risk transfer/retention, profitability, and enterprise value.

Here in my adopted home state of Tennessee, a large manufacturer was able to drive down its total cost of risk (mostly via a proactive workers comp strategy) and in turn, reduce the costs of goods manufactured (COGM).  The impact on the bottom line allowed the factory to drive significant improvements in production, profitability, and profile. 

The key takeaway here is that aligning with your organization’s most important metrics AND demonstrating the impact are both necessary for the best possible outcome--insurance is the means to the end rather than the end in itself.

While this is straightforward, it’s not simple and the risk managers who do it well are seen as strategic and indispensable...much more than a cost center or line item in a budget.


Best-in-Class Risk Managers are Multilingual

About the author

As President of National Specialties at EPIC Insurance Brokers and Consultant, Scott leads teams that deliver creative and innovative solutions to the Sports & Entertainment, Healthcare, Professional Services, Tech & Life Science, and Risk Reduction Consulting industries.

See how leaders like you are using the Archipelago Risk Data Platform to drive better outcomes:
Get Diagnostic Assessment or Request Software Demo

"Here in my adopted home state of Tennessee, a large manufacturer was able to drive down its total cost of risk and in turn, reduce the costs of goods manufactured. The impact on the bottom line allowed the factory to drive significant improvements in production, profitability, and profile."

After working shoulder to shoulder with risk managers for more than twenty-five years, I both have tremendous respect for the importance of their Swiss Army Knife-like roles and find them to be generally unsung, often misunderstood and consistently undervalued. Recently, risk managers are being measured more by...

More from Thought Leaders

"Perhaps the most lasting impact of the current capacity 'crunch' will be the changes in the way of working... a step-change in the capture and use of data, and the embracing of modern ways of working - digital and increasingly remote."

Tim Wright

Board Director, Archipelago

Read more
This is some text inside of a div block.
"While [vulnerability curves] can work well in an aggregate analysis involving a diversity of property types and vulnerability classes, there are some cases where the default use of generalized vulnerability curves do not adequately address the performance of a particular construction style."

Scott Lawson

Chief Risk Engineer, Archipelago

Read more
This is some text inside of a div block.
"Insurance is a data-driven industry, and it’s time we deliver data-driven transparency on what the relationships are between inputs, and outputs."

Mike Korn

Managing Principal, Risk Management Property & Marine Practice Leader, EPIC

Read more
This is some text inside of a div block.