What is Cost of Risk?

Risk is a fact of life.  Every business needs to deal with risk and its cost.  The “cost of risk” is all of the time, the trouble and the expense you go to in protecting your business/practice/organization from the risk of loss.  More specifically, it’s…

1.  The time, effort and hassle you spend on…

• Identifying, assessing and reducing risk
• Securing quotes, analyzing quotes and purchasing insurance
• Attending to all of the insurance details

2.  The dollars you spend on…

• Insurance premiums
• Deductible losses
• Uninsured losses