The Iconoclast is always happy when someone responds to a column. It assures him that at least one or two claim professionals still read print publications and, better yet, spend a moment or two pondering his monthly cogitations. It was especially pleasing to hear from Donna Popow of the Insurance Institute of America. She assured me that we readers (and writers) are not a totally maladjusted bunch, even if we are a bit out of touch with the modern generation in terms of computerized learning technology.

It is time to address the concerns of some other readers, as well. In most cases, respondents send the editor an e-mail, which he then forwards to me to make a personal reply. One reader in the Pacific Islands asked if claim adjusting provides a solid background for corporate risk management. Although the monthly blurb mentions my experience in both areas, I suggested that the question would be equally addressable to co-columnist Kevin Quinley, who also shares a claim and risk management background. In fact, he probably knows more today about the current high-tech enterprise risk management systems than I ever will.

In short, the answer is “yes,” but with a caveat. The fields of claim and risk management are both based on a common source: loss. Risk management examines loss before it happens; evaluates its potential; tries to reduce or eliminate it; or pays for loss when it occurs despite these measures. The claim adjuster must also look at loss, but after the fact, to figure out both the cause and the cost. But that is only part of the story. Today's chief risk officer (CRO) is probably less concerned with the nitty-gritty of everyday hazards, perils, and losses than with the financial aspects of both pure and speculative risk. Today, one might consider risk management a field of finance. (I trust that Kevin will correct me if I've missed the boat on this.) The 21st century risk manager not only deals with insurance issues, but also with investments, debentures, currency exchange rates, accounts receivables, derivatives, and other financial factors that put a corporation or governmental agency at risk.