Know difference between risk management consultants and insurance brokers

Unlike insurance agents, risk management consultants do not sell or broker insurance, and they are not affiliated with insurance companies. Risk management consultants provide independent and objective analysis. They are paid by the client and do not receive commissions.

I recommend: The Society of Risk Management Consultants Web site includes a section that outlines the differences between insurance providers and risk management consultants. If your needs lean more toward typical insurance, the Insurance Industry Internet Network is a web-based directory for the insurance industry.

Understand what risk management consultants can do for your company

Risk management consultants provide risk exposure analysis, and offer evaluation and recommendations regarding coverage and loss control. In addition, they manage marketing and selection of insurance programs and risk-related services.

I recommend: Public Entity Risk Institute (PERI) features extensive resources to help you derive the greatest benefit from your risk management partners. PERI's Web site includes a disaster planning toolkit and publications on risk management for small business. Even if you never hire a consultant, take a look at this risk checklist from PERI for an overview of the range of threats that can face a business.

Know where to find the right RMC for your business

Where to find the appropriate risk management professional will depend upon your industry and your specific needs. There are both generalists and specialists.

I recommend: Directories of risk management consultants include RiskWorld and the SRMC, which provides listings geographically. The Global Association of Risk Professionals (GARP) focuses on risk professionals in financial risk management, while the Nonprofit Risk Management Center features information, training and resources for nonprofit organizations. Bobsguide.com lists risk management consultants from a number of disciplines.

Consider whether your business needs its own Risk Manager

Larger organizations can benefit from a dedicated, in-house risk manager whose job it is to set risk management policy, develop risk response strategies and build a risk-aware culture within the company.

I recommend: Risk Management training and education can be provided by The Institute of Risk Management or the Risk and Insurance Management Society (RIMS). RIMS also features a searchable directory for risk professionals, or you can search resumes for risk managers through their job bank.