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In 2003, Dallas-based paper products manufacturer Kimberly-Clark decided to dramatically increase the deductibles on multiple lines of insurance coverage. While the choice substantially lowered premiums, it also significantly increased the risk of losses that would now have to be paid internally. To manage these heightened exposures, the company’s risk management department introduced the Quality of Risk Program, an ERM strategy that helped quantify and prioritize threats to its business. “We were self-retaining a lot more risk and needed to find enhancements to our programs to help us mitigate these exposures,” explains Ray Van Eperen, vice president of property-casualty risk management.

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