NU Online News Service, May 4, 2:57 p.m.EST

VANCOUVER, British Columbia—C-suite executivesexpect risk managers to better explain risks and solutions andbecome more involved and integrated in daily activities, accordingto a recent survey.

The survey, “Excellence In Risk Management VIII: GreaterExpectations, Greater Opportunities,” released by Marsh at the Riskand Insurance Management Society's annual conference here, findsthat an overwhelming number of risk managers say seniormanagement's expectation of their department has grown over thepast three years.

“The C-suite expects risk managers to jump into the fold,” saysBrian C. Elowe, managing director, Marsh USA Inc., in Boston, Mass.He adds, “Don't wait for an invitation.” For risk managers who arenot members of the governance table, this is the time to seize theopportunity, he says.

Panel members at a press conference say that risk managers needto present data and other information in a way that is meaningfulto their organization's executives. Risk managers need to explainthe risk and the solutions rather than submit pages and pages ofdata for review, they say.

Pamela G. Rogers, senior vice president, Marsh Risk Consultingin Minneapolis, Minn., explains that expectations for risk managershave changed. Upper management now wants risk managers to be moreintegrated with their company's operations, have a betterunderstanding of non-insurable risks and be more involved withenterprise risk management.

“There is a gap in what management wants and what they aregetting,” she says, adding that risk managers often sell themselvesshort.

While risk managers are focused on the cost of insurable risk,the cost of claims and everyday operations, senior managementexpects them to become more effective in executing day-to-dayactivities using more technology, she says.

When C-suite respondents were asked in what areas expectationshave grown:

• 61 percent say they want to see risk managers integrate deeperwith operations.
• 60 percent say risk managers need to execute day-to-dayactivities more efficiently.
• 58 percent say risk managers should do more to leadenterprise-risk-management activities within the organization.
• 54 percent say risk managers need to provide betterquantification and analysis on risk management; develop greaterunderstanding of non-insurance risks; and increase theirinvolvement in the organizations' overall businessstrategic-planning efforts.

Other significant findings from the survey include:

• Strengthening ERM and training/education are the two primaryfocal areas for developing risk-management capabilities in thecoming year, cited by 53 percent and 52 percent of the surveyrespondents, respectively.
• Nearly 60 percent of respondents say their use of data andanalytics has changed over the past three years.
• Economic conditions rank as the number one risk amongrespondents for 2011 and are cited as the risk area thatrespondents expressed the most discomfort over their organizations'ability to manage.
• The number of respondents reporting they have across-functional risk committee increased significantly over thepast year, from 47 percent to 62 percent. Only 30 percent ofrespondents, however, describe their risk committees as “veryeffective.”

The survey was compiled from online responses received duringthe first quarter of 2011 from 1,022 risk managers and C-suite,finance and other executives involved in risk-related functions,according to Marsh.