When it comes to providing information to senior financial executives, risk managers need to understand the importance of speaking the language of the treasurer and CFO—and not the language of risk and insurance. They also need to understand the importance of using broker information and assistance appropriately.
According to Michael Liebowitz, director of risk management and insurance for New York University, what financial executives are really looking for these days are the true, total cost of risk and the extent to which the company is insured, relative to that cost.
Each quarter, Pearce provides a financial analysis of Workers’ Compensation data, which he presents to the leadership of the finance division. He also submits a summary of significant claims to the company’s public auditors, which is first reviewed by Kelly’s executive leadership.
“Once a year, we make an insurance review presentation to the board’s audit committee, which is usually a 15- to 20-page document,” says Pearce, who notes that the report highlights efforts made in the company’s enterprise-risk-management program.