| In the insurance sector the job of a risk manager | | | | event. |
| in simple terms is to work out how likely | | | | Defining a framework - now that the risk itself |
| someone is to claim and what premium would be | | | | has been identified a framework is important to |
| required should they need to pay out on the | | | | understand & explain your findings. |
| policy. | | | | Developing an analysis - here is where the |
| An example of risk management in work could | | | | experience & training really becomes |
| be, given the recent changes in the UK law, | | | | important. It is the analysis & |
| anyone found using a mobile phone whilst driving is | | | | recommendations that are created during risk |
| liable to a fine and penalty points on their license. | | | | management that helps those creating premiums |
| The idea follows anyone who has been found | | | | understand the situation even if they may not be |
| using their mobile and received penalty points is | | | | familiar with the intricacies of that specific case. |
| more likely to have an accident & claim on | | | | However the role of an experienced and qualified |
| their policy. If they have disobeyed traffic laws in | | | | risk manager can be a lot more complex & |
| the past this implies they might do again in the | | | | challenging. Field assessments as well as the |
| future. Therefore their premium is higher to cover | | | | production of detailed risk reports are all part of |
| the greater likelihood of a claim. | | | | the job. |
| The role of a risk manager typically goes through | | | | Given the important role insurance has within |
| four stages | | | | every area life an insurance job offers real |
| Planning - normally this involves understanding the | | | | potential for future growth. There are a number |
| process or what happens that needs to be | | | | of organisations which risk analysts can become |
| insured. By understanding the detail a risk analyst | | | | members of, which provide support, training |
| is able to understand the potential outcomes of a | | | | & professional opportunities to their |
| situation and make reasoned judgments & | | | | members. Chartered Insurance Institute (CII) is |
| recommendations. | | | | one of the main organizations and they offer a |
| Mapping out - this involves working out the | | | | variety of specific qualifications which would be |
| various stake-holders and to what extent each | | | | worth considering as part of your ongoing |
| risk needs to be assessed based upon the | | | | development in risk management. |
| likelihood of the risk & consequences of that | | | | |