In the corporate world, management teams share with NFL franchises the challenge of evaluating talent and performance. Because it makes little sense to see how fast a risk management runs the 40, what metrics do we use in evaluating their performance?

For companies with risk managers—whether they are full- or part-time—there remains the recurring challenge: How to accurately measure and evaluate if the risk manager is doing a good job? Upper management may think that it has an adept risk manager, but how does it reach that conclusion and know with some certainty? Or, management may harbor concerns about the “value being added” (or not) by a practitioner.  Management may be thinking about eliminating the risk manager position, cutting costs or “doing it on the cheap” by outsourcing the role to the insurance broker.  But how can management determine if those concerns are well-founded?   

Commitment Versus Involvement