1 / 25

The ARM Bob Uhorchak, CSP, ALCM, ARM reuhorchak@mindspring

[ No LEG(S) ! ]. The ARM Bob Uhorchak, CSP, ALCM, ARM reuhorchak@mindspring.com. Questions to consider:. Why can the VP of Operations be pleased with a declining OSHA Incident Rate, yet the VP of Finance be displeased ??. or.

lali
Download Presentation

The ARM Bob Uhorchak, CSP, ALCM, ARM reuhorchak@mindspring

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. [ No LEG(S) ! ] The ARMBob Uhorchak, CSP, ALCM, ARMreuhorchak@mindspring.com

  2. Questions to consider: • Why can the VP of Operations be pleased with a declining OSHA Incident Rate, yet the VP of Finance be displeased ?? or What is “Enterprise Risk Management” and how does it apply to EH & S ?? or (for HPS members) How can insurance possibly be related to radiation safety, especially since “radioactivity” is excluded in virtually all property & casualty policies ??

  3. Associate in Risk Management (ARM) Sponsoring organization: American Institute of Chartered Property & Casualty Underwriters/Insurance Institute of America, (AICPCU / IIA) Translation: An independent, continuing education organization(s) for the property & casualty insurance industry

  4. General Requirements for Designations - no specific prerequisites; guidelines only • interest in property & casualty insurance • desire to show qualifications to current and/or prospective/future employers • ability to pass a national, multiple choice, examination; each ARM course exam is 2 hour, 85 questions Note: The Certified Risk Manager (CRM), designation is offered by another insurance, continuing education organization; the National Alliance for Insurance Education and Research

  5. Examples of Designations from AICPCU/IIA Certificate in General Insurance: 3 course sequence: P & C; Personal; Commercial; good basic courses CPCU: Chartered Property & Casualty Underwriter; 8 courses; the “standard” for insurance professionals ALCM: Associate in Loss Control Management; 5 courses [Note: No longer offered]; the CSP or CIH are now accepted ARM: Associate in Risk Management; 3 courses; strong foundation courses, but generally at a “management” level, not detail level; widely recognized & accepted – standard for risk managers AU: Associate in Underwriting; favored by underwriters

  6. Why pursue the ARM? • “Chance favors the prepared mind” Louis Pasteur “… I took the one less traveled by, and that has made all the difference” Robert Frost

  7. … recall the alchemist’s goal was to turn lead into gold … “… from technical nerd to administrator…” Bob Uhorchak i.e. potential for promotion/more $$$

  8. The ARM • 3 courses: • Risk Assessment, ARM 54 • Risk Control, ARM 55 • Risk Finance, ARM 56 Courses can be taken in any order No previous “insurance” experience required High degree of memorizing & understanding new terminology Basic Algebra skills needed

  9. My Observations From Teaching Review Sessions For Each Course • Risk Assessment, ARM 54: Introductory; Overview of Risk Management; Overview of 4 primary loss concerns [property; liability; personnel; net income] & risk control concerns; Basic concepts of probability & statistics & application to risk management (forecasting); Basics of evaluating insurance costs using Present Value concepts Probability & statistics applied to scenarios can be confusing if never exposed to these topics before

  10. 3 Types of PV Calculations: • Single Future Payment; use App’x A; • also: PV = Future Value x (1 + r) -n • Stream of Equal Future Payments; use App’x B; • PV =1st Annual Am’t +2nd Annual Am’t +..+ nth Ann. Am’t (1 + r)1 (1 + r)2 (1 + r)n … from ARM 54) Educational Objective 3 Present Value, (PV), calculations using PV tables: text Appendix A (p. 13.32 – 13.33) & Appendix B (p. 13-34 – 13.35); [also using formula’s]

  11. Risk Control, ARM 55 • Descriptive, no math; primarily understanding definitions; generally familiar territory for most safety folks • Course outline explores risk control concepts for 4 primary loss exposures [property; liability; personnel; net income] with some detail regarding each

  12. Risk Finance, ARM 56 • New territory for most “safety” professionals • Various risk finance concepts are explored and contrasted e.g. retrospective & prospective financing plans – cash flow advantages & disadvantages of each; the use of “captive” insurers; present value issues • Basic familiarity with balance sheets & income statements is helpful

  13. Other: • Cost: [per course] • Basic package: Text, CD, Course Guide ~ $160; Additional aids available • Exam: $170 - $380 depending on timing & one exam or segmented exam • Exam: • AICPCU/IIA currently uses Prometric as the examiner; Some insurance companies will host the exam

  14. Preparing for ARM Exams • Options are available: • - self study at home • - on-line tutorials/trial exams • - join a study group, either formal or informal Also: AICPCU/IIA offers many study aids Other companies, e.g. Keir, offer study aids

  15. Why can the VP of Operations be pleased with a declining OSHA Incident Rate, yet the VP of Finance be displeased ?? • Answer: Because of “the disconnect” 1 that can occur between IR and Loss Costs i.e. IR can be declining, but loss costs can be increasing Enterprise Risk Management is an example of a management system that attempts to integrate the organization to solve this problem

  16. Question: What is “enterprise risk management”? Enterprise Risk Management is: “an approach to managing all of an organization’s key business risks & opportunities with the intent of maximizing shareholder value” - it encompasses both hazard risk and business risk - it focuses on the organization as a whole

  17. Possible outcomes from two sources of risk (Interest Rate Risk i.e. Business Risk & Hazard Risk i.e. Pure Risk) Hazard Risk (Pure Risk) No LossLoss [Quadrant 1] [Quadrant 2] Gain [good] [Quadrant 3] [Quadrant 4] Loss [bad] - from the ARM 56 text, page 1.14, Exhibit 1-6 Interest Rate Risk (Business Risk) good - good good - bad bad - good bad - bad

  18. How can insurance possibly be related to radiation safety, especially since “radioactivity” is excluded in virtually all property & casualty policies ?? Answer: Because several “radiation” endorsements (additions which have been court tested) can be added to a basic property policy that give some coverage for radiation related accidents

  19. Useful Websites & References • www.aicpcu.org; the website for additional information regarding many certifications, examination information, practice exams, etc. • www.asse.org; web site for the American Society of Safety Engineers; their “Risk & Insurance” specialty practice is particularly helpful • www.rims.org; web site for “Risk & Insurance Management Society”; the professional society for risk managers • Glossary of Insurance & Risk Management Terms, International Risk Management Institute, Dallas, TX; a must have reference

  20. Footnote • 1 “Beware the Disconnect: Overcoming the Conflict Between Measures & Results”, Daniel Zahlis & Larry Hansen, Professional Safety, November 2005, ppgs. 18 - 24 A similar article: “Employee Injury: Effects on a Company, Workers’ Compensation & OSHA Compliance”, Robert Ray, RM/Insight, 2007, Vol. 6, No. 3, ppgs. 1, 8 - 10

  21. Any Questions ??

More Related