risk management consulting organization is a firm that does not
sell insurance but provides advice on insurance and other risk
management matters for a fee and not in association with the
selling of insurance.
The essential value of a risk management
consultant's service is its expertise and objectivity. A risk
management consultant can be hired either for a specific project
or on a continuing basis.
A competent risk management consultant
should be able to perform, or advise
others in performing, virtually any
specific task related to the risk
management function of any organization.
The following are some of the special
projects for which an organization
should hire a risk management
an organization's loss exposures and recommending an
appropriate risk management program,
specifications for the bidding of an insurance program and
analyzing the proposals received in response,
all or some portion of an organization's current risk
management activities, much the same way an accountant
audits financial record-keeping,
conducting a feasibility study of proposals for establishing
a captive insurance affiliate or pool
or joining a risk retention group.
a risk management procedures manual,
designing and/or conducting employee safety training
confirming the recommendations of an organization's own risk
management professional to lend more credence to the
essentially completed work of that individual.
Any one-time employment of a
risk management consultant should be designed to permanently
enhance an organization's risk management program, not merely to
create a "temporary tempest" of activity that soon ends without
any permanent positive effect. A risk management consultant may
be compensated through an hourly or daily fee, on a monthly or
annual retainer, or on a per assignment basis.
When choosing a risk management
consultant, education and experience are reasonably valid
indicators of ability, as are references. Approximately
one-third to one-half of all the risk management consultants are
members of the Society of Risk Management Consultants.
Credentials aside, perhaps the single most important
qualification of any risk management consultant is the ability
to work and communicate cost-effectively with any given client
organization. [This information excerpted from "Essentials of
Risk Financing" Volume II, Tiller, Blinn, Kelly & Head,
Insurance Institute of America.]