Risk management expert witness Alan F. Shirek describes the job of the risk manager:
Today’s “best in class” risk manager spends a very minor part of their time tweaking their insurance programs. They have gone beyond that stage. They spend time operating within the “retained risk” area and direct the process in which their employer assumes risk associated with their business model.
In dealing with their insurance programs, they spend up to 25% of their time dealing with their brokers or vendors, their insurance carriers and various claims professionals representing them or adverse parties.
The risk management position fits into the organization as a direct report to the CFO, Treasurer or General Counsel, depending upon the make up of the firm’s cost of risk. Finance is preferred where the cost of risk is most heavily weighted toward insurance and administration. General Counsel is preferred when self-insured claims are supervised by in-house legal staff and have frequently litigated outcomes.