Understanding Cost of Risk

It is very important for business owners, large and small to understand the components of Cost of Risk – and to understand that each of these components is manageable.  Every dollar of Cost of Risk comes right off of the bottom line.  It is a pure expense.  Every dollar we do not spend on Cost of Risk – stays on the bottom line, as a whole dollar.  We know from experience that it is a lot harder to “make a dollar” than it is to not “spend a dollar”.

In future editions of this Risk Management Blog we will discuss the elements of Cost of Risk and how business owners and managers can work with their insurance agents, carriers and others to “manage” that cost.