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Integrated Risk Management and the Role of the Risk Manager
Author(s) -
Colquitt L. Lee,
Hoyt Robert E.,
Lee Ryan B.
Publication year - 1999
Publication title -
risk management and insurance review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.386
H-Index - 16
eISSN - 1540-6296
pISSN - 1098-1616
DOI - 10.1111/j.1540-6296.1999.tb00003.x
Subject(s) - reinsurance , risk management , business , financial risk management , enterprise risk management , sophistication , it risk management , actuarial science , it risk , financial risk , finance , factor analysis of information risk , risk analysis (engineering) , risk management information systems , information system , management information systems , social science , engineering , sociology , electrical engineering
Although the transferring of a firm's pure risk historically has been conducted through the insurance and reinsurance markets, risk managers of large corporations are reportedly becoming more sophisticated with regard to their risk financing strategies. This increased sophistication has come in the form of greater use of techniques such as captives, finite risk insurance, financial reinsurance, and risk retention groups. The purpose of this study is to assess the characteristics and extent of integrated risk management. Using survey data, we evaluate several aspects of risk management integration, including (1) the extent to which risk managers are involved in managing both pure and financial risks facing their firms, (2) the nonoperational types of risks handled by risk managers and the techniques being used to handle a broader set of risks, and (3) the effect that factors such as the size of the firm, the firm's industry, and the background and training of the risk manager has on participation in integrated risk management activities.