TCOR – Total Cost of Risk

At a recent professional CFO forum, I was intrigued by a concept on risk that might be of interest to Entrepreneurs.

Instead of the traditional view of insurance, Dana Coates of United Agencies Insurance (www.tsbic.com) presented a concept of TCOR – Total Cost of Risk.

TCOR includes all of the costs associated with managing a company’s financial risks. TCOR equals risk management administration costs, retained losses related to deductibles and uncovered claims, insurance premiums, and outside service such as consulting, training, sub-contracting.

Viewed from this perspective, Entrepreneurs can appreciate the cost of managing financial risks. It is not just about insurance premiums!

Ravi Patel

www.patelCFOservices.com

The URI to TrackBack this entry is: https://bloggerravi.wordpress.com/2009/09/29/tcor-total-cost-of-risk/trackback/

RSS feed for comments on this post.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: