Fractional Risk Management

What is Fractional Risk Management? 

 

Fractional Risk Management is an ideal solution for companies to leverage the expertise, experience, and services of a full-time insurance risk manager in a more cost-effective, time-sensitive, and detail-oriented resource.  Simply put, it is a way for companies to hire an insurance risk manger with all the expertise required for the job on a less-than-full-time, contract position basis.  This approach allows company leadership an opportunity to tailor a customized solution to meet their particular risk profile and needs. 

 

This is accomplished by being able to most appropriately match the total time required for the job function with the appropriate expense allocation to the insurance risk management function.  It might be thought of as allowing company management to no longer be obligated with the choice of expending larger than necessary financial and legal obligations required to hire a a full-time insurance risk manager when a Fractional Risk Manager is the most appropriate solution.  It might also be thought of as as hiring an experienced and knowledgeable professional support staff on a part-time basis.

 

Why should my company consider Fractional Risk Management?

 

Many companies which have not previously employed an insurance risk manager find themselves in a position where they need a dedicated insurance risk manager, but they simply cannot afford to add the overhead costs of a full-time staff member to fill this position.  Often times this junction has occurred through either growth and / or the development of complexities in the business model requiring knowledgeable, dedicated risk management attention.  Profitability comes with the discipline to carefully manage overhead expenses.  

 

Businesses are now often times required to operate under smaller margins to maintain a price competitive advantage.  In previous decades, information could more easily be utilized to develop a competitive advantage.  However, with technological advances over the past three decades, particularly the development and explosion of the internet, information is more readily available across all competition.  As such, and in today's highly competitive, fast-pace business climate, in order to maintain competitiveness and also profitability, long-term success, and viability demand wise business decisions.