Page 18 - Insurance Times August 2018
P. 18
Cover Story
EVOLUTION
AND CURRENT
STATUS OF
THE RISK
MANAGER
"We have met the enemy, and he is us" sudden and unexpected financial downturn as a result of loss
by a natural disaster or negligence.
- Walt Keely
"Risk Managers are in the business of managing the Earlier, little thought, whatever, was given to static risk as
future….." said Tony Burlando (Risk Manager of Hillman a specialized problem worthy of high top level management
Company in Pittsburgh while Chairing a RIMS Task Force). concern or programs. Companies bought whatever insurance
Risk managers advise organizations on any potential risks policies were considered necessary by their peers who
to the profitability or existence of the company. They happened to be in the sales aspect of the insurance industry.
identify and assess threats, put plans in place for if things
go wrong and decide how to avoid, reduce or transfer risks. Mowbray says that "those otherwise intensely practical
executives abdicated their authority when questions on
Although, the term Risk Manager is quite known there has risk and insurance arose and left decisions to their brokers
been strenuous efforts for about past 75+ years to or agents, keeping some control over amounts expended
professionally isolate and upgrade the status of that in premiums." He adds that what records were kept
individual who is responsible to protect the firm from a and what planning was done were usually assigned to some
minor individual in the office of the treasurer or the
About the author controller.
Lajpat Ray Chandnani There was but little analysis of the risk problems and little
planning on any except to transfer the risk to an insurance
lajju1954@gmail.com carrier for a seemingly reasonable premium. How this was
www.lajju.in done can only be assumed to have been generally
haphazard.
18 The Insurance Times, August 2018
