The total risk and the cost required for countermeasures are evaluated numerically.
Total cost of risk (TCOR) refers to the total cost of avoiding, transferring (including insurance), mitigating, and retaining risks surrounding a business.
Our TCOR assessment analyzes and organizes not only transfer costs such as insurance premiums, but also losses due to retained risks, costs required for accident response and recurrence prevention, and operating costs of the risk management system, in order to understand the extent to which the company as a whole bears risk-related costs. This clarifies the cost structure and identifies challenges for optimizing risk countermeasures and insurance programs.
By evaluating TCOR (Total Risk Adjustment Rate), it becomes possible to view risk expenditures from a comprehensive and managerial perspective, rather than simply looking at increases or decreases in insurance premiums. As a result, it becomes possible to consider cost-effective risk management measures, review insurance conditions and coverage levels, improve risk finance strategies, and ultimately allocate management resources appropriately.