1. What is Risk Management?

Dealing with the bad things (Pure Risk)
that can happen to individuals and
companies.

Safety and loss control

Insurance and loss funding

Health and employee assistance

Environmental issues

Emergency preparedness

2. The Nature of Risk
Managment

Scientific approach to dealing with pure
risk

Broader than insurance purchase

Differs from the insurance management
philosophy

3. Development of Risk
Management
Risk management evolved from corporate insurance buying
1929
1931
1932
1950
• Corporate
insurance
buyers met in
Boston to
discuss mutual
problems.
• American
Management
Association
established its
Insurance
Division.
• Insurance
Buyers of New
York formed.
• National
Association of
Insurance
Buyers formed;
(later became
American
Society of
Insurance
Management
and then
became the
Risk and
Insurance
Management
Society (RIMS)).

4. The Non-Professional Risk
Manager

Must seek outside assistance

Insurance industry may not be good help