Audits vs. Performance Reviews vs. Benchmarking
Mark Nestor
President, Independent Consulting & Risk Management Services, LLC
Audits are an analysis under prescribed standards, normally undertaken by a qualified independent firm. They're looking to follow national or state guidelines, and are marginally collaborative between the auditor and the client. A performance review is a much broader view, blended of informal and formal activities, and can be conducted internally or externally. Whereas benchmarking, is a very informal process in which predefined quantitative and qualitative analysis is based on the entities’ key metrics using either national standards, such as IRIS - the insurance regulatory information systems - but it's important to understand the IRIS standards are really not mandated or applicable in the public entity or the public sector.
The audit, performance review and benchmarking are all tied together, but it's very difficult to do a performance review or benchmark without having the financial auditing information serve as the foundation. Your performance review and benchmarking are integral in managing and implementing activities that either are derived from the performance review or key activities that may arrive out of the audit process itself.
Each protocol has a specific role and different areas of involvement that a public entity is pulling when undertaking an audit, performance review or benchmarking study. It’s valuable to understand the data formulated within each process and how the information is used within the entity itself.
Mark Nestor
President, Independent Consulting & Risk Management Services, LLC
Summary of Qualifications
Mark has worked in the capacity of a public entity pool manager and consultant for pools for four decades. He has assisted public entity pools and their leadership teams in the development of management tools to enhance overall operational performance and provide more effective services to pool members.
Mark has hands on experience in developing and managing pooling functional activities to include marketing/membership, underwriting /policyholder services, claims handling, loss control/risk management/education and training, information technology services, reinsurance and excess placement and overall program management services.
Responsibilities
Mark is responsible as the primary contact with all ICRMS clients for consulting services. Along with pools, Mark has provided consulting and auditing services for large self insurance clients to include colleges and major private contractors providing services to state agencies. He has also provided strategic planning and merger and acquisition analysis services to insurance carriers as well as municipalities for long range forecasting of potential municipal citizen needs with horizons from 5 to 20 years out.
Business Experience
With 35 years in managing and consulting with public entity pools in 23 states, Mark has worked with over 75 different P/C & WC pools in the country regarding auditing, management consulting, performance reviews, strategic planning facilitation, underwriting, policy coverage documents and reinsurance evaluation. He also has assisted pools with the development of RFPs for select services including new service providers.
Mark was a Senior Vice President of a Midwest third party administrator which managed five different PC/WC public entity pools around the country for 18 years.
Mark also has experience as a municipal risk manager and a sworn police commissioner in the State of Michigan.
Professional Affiliations
AGRIP, former Certified Safety Professional
Education
BA State and Local Government, Licensed Insurance Counselor, Associate in Risk Management, Accredited Advisor in Insurance and Certified Workers Compensation Professional
