Risk Management evolving in US markets

SAFE Risk Management Systems Launches Service to Reduce Total Cost of Risk for Businesses

BALTIMORE, MD, USA --January 21, 2003-- Businesses are spending 35 percent more than needed to minimize risk to their assets, according to SAFE Risk Management Systems, LLC. To remedy this problem, SAFE recently launched a service, available in the USA and Europe, to assist businesses overwhelmed by the cost and complexity normally associated with reducing risk.    

SAFE attributes the exorbitant cost to several factors. Businesses must manage risk across the entire enterprise-human resources, financial assets, physical and electronic environments-a daunting task given an increasingly complex and expanding threat environment. This requires either an extremely sophisticated, customized and costly solution, or an inefficient process involving numerous duplicative systems protecting each of an organizations four principal asset groups. Effective risk management software, known as risk management information systems (RMIS), can reduce some insurance costs and sometimes improve their disaster recovery capabilities, but the high cost of conventional RMIS solutions can quickly drain money and IT resources.

Businesses throughout the world have historically turned to their insurance providers, or created in-house risk management teams. Both solutions are extremely costly, and not an option for most businesses.

Because most companies simply cant devote the resources necessary to establish in-house risk management, they often turn to their insurance agent or broker. Unfortunately, asking such an organization to handle risk management needs creates an obvious conflict of interest. To have the same people both analyze exposures and then sell mitigation products which form the basis of their remuneration is scary," says Peter Teuten, founder and President of SAFE Risk Management Systems. We give businesses the opportunity to turn to an independent resource at a fraction of the cost of either creating an internal solution or relying upon partial sources. This is why SAFE was formed."

SAFEs suites of services are comprehensive, allowing businesses to assess and mitigate threats and easily maintain an up-to-date risk profile. Services include threat and vulnerability assessments; total cost of risk analysis; network security; HR systems protection; physical plant protection; security policy design; financial risk assessment; intellectual property protection; insurance and risk transfer analysis; disaster recovery and business continuity planning.

Small and medium-sized businesses are particularly vulnerable to mishandling risk, and are very often victims of the consequences. SAFE estimates that less than 50 percent of businesses have formalized and fully updated disaster recovery business continuity plans. Yet the result of experiencing a catastrophe of any kind-everything from a crashed network, to a natural disaster-causes 50 percent of businesses to fail within 12 months.

This is the consequence of not having a cost-effective, manageable solution." says Teuten. SAFE balances automated risk management software with teams of experienced RMS professionals to create a solution that is affordable and easily implemented. Outsourcing risk management is also efficient and flexible, preserving objectivity and focusing experienced professional resources to the process."

Because risk evolves over time, and new threats emerge, enterprises must continually assess and update their risk management processes. SAFE is developing a proprietary, Web-enabled Enterprise Risk Information Console (ERIC) to accomplish this. ERIC can track enterprise-wide vulnerabilities and is designed to manage the products, services, and procedures required to eliminate vulnerabilities and mitigate risk issues. SAFE anticipates launch of the Enterprise Risk Information Console in February 2003.

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About SAFE
SAFE Risk Management Systems, LLC is an independent Risk Management Services Provider, delivering integrated Enterprise Risk Management products and services. Through software and professional services, SAFE Risk Management Systems exclusively represent the interests of customers in Risk Assessment and Analysis, Mitigation, Disaster Recovery, Network Security and Configuration management, Insurance advocacy, Insurance Advisory, and Risk Profile Maintenance processes.

SAFE Risk Management Systems, LLC is headquartered at 1030 Hull Street Suite 300, Baltimore, MD, 21230, USA. Additional information about SAFE can be obtained by visiting www.saferms.com.