Managing Risk

Abstract This analysis is to submit a proposal that the chief financial officer and I fecal matter work on to chafeher to evolve into a policy that assists each Risk Management de break inment. In this proposal we exiting develop a ashes to pronounce enterprise and financial peril. However, out-of-pocket to the fact that there are both models that are inconsistent we provide have to figure out ways to work together to get on the same page to boil put down confusion and getting the clientele done. In this proposal I will illustrate how to use the ERM manakin to address find, will discuss how to take hold the Insurance Marketing act upon.Also I will discuss how to evaluate Risk Bearing and Risk manduction activities, and how to assist in implementing a Workers Compensation political program that is fair and equitable. underdeveloped a emergence to point faceal risks will assist direction in determining what risks can impact strategy and the get toment of orga nizational goals. Some of the same method actingologies used to identify risks in conventional risk management programs can be deployed in an ERM program and include twain formal and informal methods. (Youngberg, 2011).A successful enterprise risk management (ERM) enterprise can affect the likelihood and consequences of risks materializing, as comfortably as present benefits related to better informed strategic decisions, successful delivery of permute and increased operational efficiency. To use the ERM Framework to address risk, I will watch over the 5 steps that organization uses to develop and implementing the ERM programs. Which is secern and worry an executive-level champion, for any organization there should be someone in lade to make decision about certain policies or project.This will reduce migration and everyone will be in the same page. Second is to select a steering deputation and working task pull back. The benefit of the steering committee is to develop a t imeline for program development. The committee get hold ofs quarterly to examine and overly to approve project, receive status reports on existing project and to check out strategic devise for organization. (Youngberg, 2011). Third is to Review strategic plan for organization, which means organizations should be aware of the work strategic direction.You cant be a team leader without knowing whats your organization plan is. As stated in the course text the strategy plan should be reviewed with the steering committee and the working task force to arrest that the goals and objective are clearly stated that ERM program support the existing plan, and that conflict do non arise (Youngberg, 2011). Fourth is to Identify and review authorized risk-identification tools. Which mean the working task force should review all existence methods to identify risk.These methods may be internal or external to the organization and may be formal or informal. subsist but not least, the organizat ion should be compile and share imagery lists and prolongation materials, and identify subject-matter experts. For example, the working task force will be responsible for compiling the reference materials in an online library for easy reference. (Youngberg, 2011). Also follow the surveys and risk interviewing method. To support the Insurance Marketing Process is to understand the steps and to have a better understanding of how the process works.What I would do is before beginning the marting process with some other organization I would find out what are the objectives and strategies for transferring risk to the commercial-insurance market place. We both should come together with an agreement and be aware of the current risk-financing plan before the process. Also to identify and analyze dominance insures. If I have to choose whose will be my potential difference insurer, this candidate should meet all of the organizations objectives. Its also my responsibility to collaborate wi th other potential organizations and which candidates will the best carrier to do business with.The steps that will be taking are Organizations should be reviewing exiting financial plan, identify potential markets, collecting data and lose information, reviewing loss forecast and prepare uninflected summaries, developing program options. Finalize submission, submit to market, meet the underwriters, obtain quotations and discharge comparative analyses, negotiating place policies and monitoring results and relationship. (Youngberg, 2011). According to health personal matters articles, Balancing Risk Bearing and Risk Sharing is a system that is entirely risking bearing.The primary purpose of a cost-allocation system is to encourage companionship in risk management programs, reduce overall costs and the relative frequency and severity of losses, and share proportionately in the cost of the program. The easiest way to achieve this is by allocating the costs to the parties that gene rate them. A risk-sharing system allocates all medical exam liability costs in proportion to each departments exposure. The proper allocation system for most organizations lies somewhere between these two extremes. (Youngberg, 2011).The number of risk-sharing arrangements between health plans and providers grew rapidly. More recently, however, there is evidence that plans and providers in some markets are losing interest in developing new or continuing existing risk-sharing arrangements. Several factors appear to be contributing to this variety show the financial instability of risk-bearing organizations consumer and provider backlash against managed care and an increasingly constraining regulatory environment, which may extend to plan-provider contracting arrangements. (Marsha R.Gold. 2003). Risk sharing is mesmerizing on several fronts. For plans, it provides a mechanism for controlling costs for providers, it preserves their autonomy by shifting to them responsibilities for m anaging service use, costs, and quality. However, it also has a down side, particularly if the amount of risk transferred is large or payments are not commensurate with expected costs. (Kleffner, A. Drohetrty, N. 1996) Many provider organizations have little get laid managing risk and lack the necessary infrastructure to manage it effectively.If the degree of risk transferred to providers is more than they can absorb, their continued viability, as head as that of plans with whom they contract, may be jeopardized. This in turns raises the likelihood that the level and quality of care procurable to enrollees could be negatively affected. (Marsha R. Gold. 2003). Base of what the most important factor to evaluate Risk Bearing and Risk Sharing activities is whomever created the risk should be advance to participate in risk management cost and activities.From my perspective, workers allowance can be defined as all of the rewards acquire such as direct financial compensation consisti ng of pay received in the form of wages, salaries, bonuses and commissions provided at regular and consistent intervals. Indirect financial compensation including all financial rewards that are not included in direct compensation and can be understood to form part of the social contract between the employer and employee such as benefits, leaves, retirement plans, education, and employee services.Non-financial compensation referring to topics such as career development and advancement opportunities, opportunities for recognition, as well as work environment and conditions by employees in return for their labor. In determining effective rewards, however, the uniqueness of each employee must also be considered. People have different needs or reasons for working. The most set aside compensation will meet these individual needs.To a large degree, equal to(predicate) or fair compensation is in the mind of the employee. A true compensation strategy includes a balance between internal loveliness and external competitiveness. Compensation and benefits affect the productivity and happiness of employees, as well as the ability of your organization to effectively realize its objectives. It is to your advantage to ensure that your employees are creatively compensated and knowledgeable of their benefits. (Gomez-Mejia, L. , & Wiseman, R. M. 1997). ConclusionDeveloping a process to identify organizational risks will assist management in determining what risks can impact strategy and the achievement of organizational goals. There several tools to follow when working as a team, the two most common method is used in ERM program are surveys and risk interviews. If were release to work as a team we have to open-minded and be responsible and thoughtful. Communication is the key to be successful in a organization. Also following the five steps of developing and implement an ERM program can help an organization moves forward.