Cutting costs and managing expenses are high on corporate risk managers' priority list as the global financial crisis lingers, according to a survey that Towers Watson & Co. released Wednesday.

Nearly 64% of the 244 corporate risk managers surveyed said the cost of claims within their retentions, including captives, was the most important issue in controlling the cost of risk.

Further, 49% of risk managers surveyed said premiums paid to a third-party insurer is second in terms of importance in keeping costs down.

The New York-based risk management and human resources consultant surveyed corporate risk managers in April and May. Sixty-nine percent of the participating companies have revenues of at least $1 billion. In addition to reducing retained claims costs, respondents also answered questions on enterprise risk management strategy and contingent commission fees that brokers receive from insurers.

The survey found that 55% of risk and finance managers have a true ERM process in place, up significantly from 11% in 2000 and 37% in 2005. Of companies that don't have an ERM strategy in place, 37% of the respondents said there has been no articulation of the value of implementing an ERM program and 27% said ERM was too resource-intensive and expensive.

“Even among companies that have implemented ERM, many don't address hard-to-quantify risks because they simply lack the metrics to understand their potential impact,” Barry Franklin, director of Towers Watson's corporate risk management practice, said in a statement. “ERM is ultimately about better management of all capital—physical, financial and human.”

As far as contingent commissions, 39% of respondents said they approve of contingent commission fees as long as their broker discloses all compensation in a timely fashion. Eleven percent indicated that they have no problem with the fees as long as laws are being followed and records are kept for regulatory review. Only 29% said contingent commissions should not be allowed.

The survey is available at www.towerswatson.com.