INARM

While it is definitely true that paying less for the same amount of risk management is better than paying more, the story “Standouts in risk management honored” in Business Insurance suggests that cost management is the only objective of risk management.

This implies that there is a long way to go before folks are ready to really commit to real risk management.  Under a cost approach to risk management, it is quite likely that a firm would decide to self insure any risks where the cost to insure/hedge the risk was thought to be too high.  It also argues against identifying new risks that a firm has taken on through new activities or because of changes in regulation because that would increase the cost of risk management.

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