Risk Management

Maintaining credibility and transparency in your risk management

How is your money being spent and how do you know that you are taking advantage of every opportunity to save? Effective risk management in a world of TPAs, medical providers, attorneys, insurance companies, and claims-services providers is not a simple undertaking. In fact, the burden that falls on a risk management team can be enormous.

However failing to keep track of these root cost drivers can result in higher payments that tend to compound annually. Ineffectively monitored vendor relationships, particularly between your TPA or insurance company and other providers, can be equated to heating your home in the winter and leaving the front door wide open.

Effective & efficient oversight of vendor relationships

As we mentioned above, a decision to take back control of these relationships and create real transparency in all vendor relationships is a substantial undertaking. The benefits however, far outweigh the challenge and will provide your business with the opportunity to make a substantial reduction in your WC costs.

Your three most important risk management decisions include:

Implementing Six Sigma Methodology into your workers’ compensation program

Setting goals for your worker’s compensation program annually

Rating the performance of each vendor by a core set of metrics at least once a year.

Our Six Sigma Workers’ Compensation Program

Because our program is rooted in the fundamentals of Six Sigma, it is a holistic approach that is based upon metrics to identify areas of improvement. It encompasses risk management functions and their related opportunities for controlling costs. In specific, Our Program defines each vendor relationship and establishes benchmarking metrics for monitoring and competitive analysis. So, while your vendors may claim to be operating solely in your best interests, you will actually know for sure whether they are, or are not. To better understand how these changes impact your total cost of worker’s compensation, read more about Our Program and Six Sigma.