The ARM (no legs)

1
(No Transcript)
2
The ARM Bob Uhorchak, CSP, ALCM,
ARMreuhorchak_at_mindspring.com
No LEG(S) !
3
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 ??
4
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
5
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
6
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
7
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
8
recall the alchemists goal was to turn lead
into gold
from technical nerd to administrator Bob
Uhorchak i.e. potential for promotion/more
9
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
10
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
11
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
formulas
12
(No Transcript)
13
(No Transcript)
14
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

15
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

16
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

17
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
18
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
19
Question What is enterprise risk management?
Enterprise Risk Management is an approach to
managing all of an organizations 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
20
- from the ARM 56 text, page 1.14, Exhibit 1-6
Interest Rate Risk (Business Risk)
good -
good
good -
bad
bad -
good
bad -
bad
21
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
22
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

23
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
24
Any Questions ??
25
(No Transcript)