With Travel Money Tight, Online Training Gaining Popularity Among Risk Managers

While the demand for training and education for risk managers has not waned despite the struggling economy, many are increasingly turning to online courses as a way to save money while still expanding their expertise, the nation's biggest corporate buyer association suggests.

Mike McDonald, board member and board liaison to the professional development committee for the Risk and Insurance Management Society--which offers the Associate in Risk Management (ARM) designation, among others--said that with travel budgets down, RIMS has moved more toward virtual learning.

RIMS has increased the number of online courses it provides, while offering more webinars and recorded podcasts, according to Mr. McDonald. "This was a growing trend anyway before the recession hit," he acknowledged, but added there has been more of a swing toward online content and a reduction in onsite meetings recently, which has been a "direct reflection of what is going on in the economy."

Aside from online content, Mr. McDonald said RIMS is working with attendees to accommodate strained budgets by spreading out workshops and courses so people do not have to travel so far.

"No courses are offered in Honolulu, for example," he said, instead taking place in "core business environments," such as New York, Chicago, Atlanta and Los Angeles--"places we felt people could get to easily and less expensively."

RIMS also offers in-company training by request, Mr. McDonald noted, where instructors go to the company's location and conduct a specific, tailor-made class.

However, Priscilla Oehlert, vice president of advanced program development at the National Alliance for Insurance Education and Research, said she has been "pleasantly surprised" that numbers have held steady for face-to-face courses.

"Organizations are recognizing they need to provide continuing education for employees," she said. "We're very happy that our numbers have been able to remain stable."

Still, the National Alliance does provide online offerings and has plans to expand them. While courses for its popular Certified Risk Manager (CRM) designation are not offered online, Ms. Oehlert said, three of five courses for the Certified School Risk Manager (CSRM) designation are. All five courses will be online by Oct. 1, she added.

Mitch Cantor, executive director for the International Center for Captive Insurance Education--which offers a professional designation for those in the alternative risk-transfer market, the Associate in Captive Insurance (ACI)--also said online courses play a major role for his organization.

He said the entire series of courses required to earn the ACI designation can be done online, and in fact the majority of participants choose to complete the courses in this way.

Mr. Cantor said people seem to like the flexibility of the online courses, adding it is convenient for the wide range of ICCIE students who come from 40 different states and two dozen different countries.

Many took advantage of online courses previously, Mr. Cantor noted, but interest has picked up recently. While part of that may be economy-related, he said students are also hearing from other people who have completed the courses that the online option is convenient and does not require significant computer expertise to complete.

People who are "computer shy," he said, may have been hesitant to participate, but after hearing from colleagues that it is not a complicated process, those people may now be more willing to give it a shot.

Demand for training in general has picked up, according to Mr. Cantor, as risk managers want to make themselves more valuable as employees.

Whether providing training and education online or in a more traditional classroom environment, the key, according to Ms. Oehlert, is to provide practical examples with real-world value to risk managers.

Risk manager areas of interest, with respect to CE, vary depending on their specific tasks, explained Ms. Oehlert. Some may manage insurance claims at their jobs, while others may focus on compliance issues. And for some, risk management may be one part of their overall responsibilities as benefits managers.

The National Alliance, she said, provides programs designed to expose risk managers to as many factors as possible. For example, its CRM program consists of five separate two-and-a-half-day courses with focuses that range from analyzing and controlling risks, to financing risks and administering the risk management process, Ms. Oehlert said.

Woven through those courses is a case study where the participant can apply what they have learned and receive feedback.

Ms. Oehlert said the National Alliance is "constantly working to stay on top of issues to keep relevant," with initiatives including integrating risk management into other insurance-based seminars and working with universities to set up a University Associate CRM program designed to set prospective employees apart from their peers in the eyes of recruiters and employers.

Mr. McDonald of RIMS said he has seen heightened interest lately in classes dealing with enterprise risk management. He said risk managers are gaining interest in ERM as the term is becoming more popular among their auditors and bankers. Risk managers, he said, want to be prepared and proactive with respect to ERM from their own perspective.

Aside from ERM, he said more basic courses dealing with topics such as claims administration, analyzing insurance coverages, or working with brokers have been popular. "Workers' compensation, in particular, is a very popular subject because it touches every company," he noted.

He agreed that providing a wide array of services to risk managers is essential, and said RIMS offers a "full menu of education," from basic courses that focus on risk management foundations to a more advanced track for more experienced professionals.

"Our members really have many different types of training vehicles that they can select from," he said, noting that RIMS offers more than 50 two-day workshops in North America each year, in addition to its annual conference.

As for new initiatives, he said RIMS is partnering with the American Institute for CPCU and the Insurance Institute of America to develop a joint venture partnership. A "high-level," three-day course will be offered, as well as a new designation--Associate Risk Management Enterprise (ARME).