Insight
What’s the Indirect Cost of Risk?
The indirect cost of risk is the portion of the total cost of risk (TCOR) that is not directly related to the cost of managing risks. It includes the cost of lost productivity, damage to reputation, and other indirect costs resulting from risks.
The indirect cost of risk is often more difficult to quantify than the direct cost of risk, as it can be more intangible and harder to measure. However, it can be just as significant, if not more so, in terms of the overall impact on an organization.
Some examples of indirect costs of risk include:
- Lost productivity: Accidents or injuries can result in lost time and productivity, which can have a negative impact on an organization’s bottom line.
- Damage to reputation: A company’s reputation can be damaged by negative events, such as accidents or injuries, which can lead to a loss of customers and business.
- Decreased employee morale: Poor workplace safety can lead to decreased employee morale, which can result in lower productivity and potentially lead to high turnover rates.
- Legal liabilities: Companies can face legal liabilities if they are found to be responsible for workplace injuries or fatalities, which can result in significant costs.
Overall, the indirect cost of risk can have significant consequences for organizations and should be taken into consideration when managing risks.
Latest Posts
November 2, 2023
ITC and Sønr Name CompScience #1 Innovative InsurTech Startup
InsureTech Connect Vegas and Innovation Scout Sønr Award CompScience First Place in Forward50 Americas. Over 50 startups were researched and evaluated in the the Forward50 Americas Report by a panel of international judges and CompScience came out on top. On October 31, 2023 at 11AM on the first day of ITC, the award was […]
Read more
October 17, 2023
AI Tools for Safety
AI Tools for Safety: A Pre National Safety Council Webinar AI is rapidly transforming workplace risk. Now, CompScience gives safety professionals tools to quickly report risk, train workers and measure improvements which we will demo in the Safety Tech Pavilion at the NSC Congress. Join the webinar plus QA with CompScience CEO Josh Butler […]
Read more
August 5, 2023
What is Workers’ Compensation Software? (And how is CompScience Different.)
CompScience is Different Workers’ Compensation Software is designed to deal with various aspects of the managing claims – but CompScience is designed to lower claims by reducing injuries. We do this by analyzing workplace video, reporting risks and generating recommendations to lower the chance of injuries. And our workers’ compensation software is very effecting. Workers’ […]
Read more
July 20, 2023
Nationwide + CompScience Webinar
How Technology is Expanding Commercial Insurance Offerings: Now & Future With Dale Hoppe, Vice President, WC Programs, Nationwide and Jacob Geyer, Chief Insurance Officer, CompScience moderated by Kevin McClain, Senior Consultant, E&S Product, Nationwide Get insights on the workers comp market landscape and how Nationwide’s insuretech program offerings are expanding. CompScience will be showcased, focusing […]
Read more
July 11, 2023
How Do Poor Ergonomics Affect Workers In Industrial Settings?
Poor ergonomics refers to the design or arrangement of a workspace or equipment that causes discomfort or strain on the body, leading to physical stress and potential injury. There are solutions to ergonomic issues such as changes to workflows that improve worker ergonomics. Detecting ergonomic issues in industrial settings is the key to mitigating […]
Read more
June 20, 2023
Workplace Safety AI: The Webinar for Workers’ Comp Agents
Learn why AI is rapidly transforming workplace safety into a differentiator and how you can use safety analytics from CompScience to help clients lower injury rates and lower costs. Mike Seling and Jacob Geyer explain how AI is rapidly transforming workplace safety into a differentiator for agents and how you can use safety analytics help […]
Read more