The Client and Its Challenge
A personal financial services firm had recently lost its director of risk management and was contemplating outsourcing all of the risk management functions being conducted by its four full-time risk management department employees. The client believed that outsourcing would increase the efficiency of this function. The company engaged Marsh to help validate assumptions regarding the perceived benefits of outsourcing the risk management department.

The Risk Consulting Solution
Marsh conducted a risk management function review to understand current business process, identify opportunities to streamline and improve current processes, as well as determine the skill sets necessary for persons to be successful in the new roles within the risk management department. Marsh also assisted the client in determining whether risk-management responsibilities should be outsourced or kept in-house.

During the time of the risk management function review, the client also engaged Marsh to serve daily as its interim director of risk management. In this role, Marsh consultants provided staff management, risk financing, claims management, risk management advice, and risk management administration services. In addition, Marsh consultants communicated with both internal and external partners. Marsh also assisted in identifying a new full-time director of risk management.

Results
Based on the results from the risk management function review the client gained a new understanding regarding the roles and responsibilities of a risk management department. In addition, the company realized that keeping most of the processes in-house was a financially viable option and allowed it greater control and oversight in managing risks. Ultimately, with Marsh's assistance, the client hired a new director of risk management. With the understanding that was gained during the risk management function review, Marsh consultants were able to participate in the transition process.