--- title: Total Cost of Risk Ownership (TCRO) | Novem description: Total Cost of Risk Ownership (TCRO) is the industry standard for measuring the full financial burden of building risk. Introduced by Novem. image: https://www.novemdigital.com/hubfs/raw_assets/public/NovemZulbera_27/images/tcro/tcro-hero.jpg --- [![Novem, Property Risk Platform](https://www.novemdigital.com/hubfs/raw_assets/public/NovemZulbera_27/images/novem-logo.svg)](https://www.novemdigital.com/?hsLang=en) [Platform](https://www.novemdigital.com/platform/?hsLang=en) [Industries](https://www.novemdigital.com/industries/?hsLang=en) [TCRO](https://www.novemdigital.com/tcro/?hsLang=en) [Partners](https://www.novemdigital.com/partners/?hsLang=en) [Resources](https://www.novemdigital.com/resources/?hsLang=en) [About](https://www.novemdigital.com/about/?hsLang=en) [Contact Us](https://www.novemdigital.com/contact?hsLang=en) [![Novem, Property Risk Platform](https://www.novemdigital.com/hubfs/raw_assets/public/NovemZulbera_27/images/novem-logo.svg)](https://www.novemdigital.com/?hsLang=en) [Platform](https://www.novemdigital.com/platform/?hsLang=en) [Industries](https://www.novemdigital.com/industries/?hsLang=en) [TCRO](https://www.novemdigital.com/tcro/?hsLang=en) [Partners](https://www.novemdigital.com/partners/?hsLang=en) [Resources](https://www.novemdigital.com/resources/?hsLang=en) [About](https://www.novemdigital.com/about/?hsLang=en) [Contact Us](https://www.novemdigital.com/contact?hsLang=en) ![](https://www.novemdigital.com/hubfs/raw_assets/public/NovemZulbera_27/images/tcro/tcro-hero.jpg) TCRO Total Cost of Risk Ownership # Your portfolio carries more risk than your reports show. TCRO is the standard that measures all of it. [Calculate Your TCRO](https://www.novemdigital.com/tcro#calculator) [What is TCRO?](https://www.novemdigital.com/tcro#what-is-tcro) Co-developed with a Global Digital Energy & Building Services Company Co-developed with a Global Commercial Insurance Company $4 to $7 Every $1 of equipment failure costs $4 to $7 in total. Your insurance report shows only part of it. The hidden gap between COR and TCRO Invisible. It never shows up in your financials - until something fails. Downtime · Capital timing · Compliance · Reputational exposure What is TCRO? ## Cost of Risk measures what happened. TCRO measures what it actually costs. Traditional Cost of Risk (COR) is an insurance construct. It captures what the insurer sees: claims, premiums, deductibles. TCRO is a financial standard. It captures the full burden - including every cost that never makes it into a risk report. For most institutional portfolios, the costs COR misses are larger than the costs it measures. [Find your number](https://www.novemdigital.com/tcro#calculator) Cost of Risk (COR) Total Cost of Risk Ownership (TCRO) Insurance claims Claims + uninsured losses Annual premium Premium + transfer cost gap Downtime cost Downtime & interruption Maintenance waste Reactive vs. predictive gap Compliance overhead Audit & regulatory cost Capital timing losses Lifecycle decision cost Reputational exposure Governance & board risk TCRO framework - Novem · Global Digital Energy & Building Services Company · Global Commercial Insurance Company What the gap looks like ## What portfolios find when they look. 30% Better capital IRR When replacement decisions are driven by live condition data, not age-based schedules. $5M Single event, avoided One gas leak detected before it became a public incident. Behind that number: the people inside the building that day. 65% Fewer outbreak weeks One seniors operator. Outbreak weeks down 65%, from 19 to 3. Fewer lockdowns means more family visits. Aggregate outcomes from anonymized institutional portfolios across North America. TCRO Calculator ## Your number. In two minutes. Select your portfolio and see an estimated TCRO range - the hidden costs that exist today but don't appear in your risk report. ### TCRO Estimator Directional estimate based on aggregate portfolio outcomes. Not a formal risk assessment. Portfolio Type Select portfolio type Commercial & Mixed-Use Seniors Living & Wellness Data Centers Venues & Public Facilities Number of Assets 1 10 assets 100+ Annual Gross Asset Value Select value range Under $50M $50M – $250M $250M – $500M $500M – $1B Over $1B Gross asset value, not insured value Current Monitoring Coverage Select coverage level No continuous monitoring Basic alarms only Partial — some sites Advanced — portfolio-wide Complete all four fields to see your estimated hidden TCRO range. Estimated Hidden TCRO — Annual Hidden cost by category [Get a Full Assessment](https://www.novemdigital.com/../get-a-demo/?from=tcro&hsLang=en) [Download the Framework](https://www.novemdigital.com/resources/#white-papers) Estimates are indicative and based on aggregate portfolio data. A full TCRO assessment requires platform deployment and portfolio-specific data. Framework Partners ## Built on real data. TCRO is co-developed with the two organizations whose data makes it defensible at scale. 7.2M Buildings in the data foundation --- Building Intelligence Partner Global Digital Energy & Building Services Company A global leader in building infrastructure, contributing the continuous building data that turns TCRO from an estimate into a measurement. 20yr Buildings of insurer claims history behind our loss values --- Insurance Intelligence Partner Global Commercial Insurance Company One of the world's leading commercial insurers - contributing two decades of claims data that connects building conditions to financial outcomes boards and underwriters can act on. Common Questions ## Questions worth answering directly. What is TCRO and who introduced it? TCRO - Total Cost of Risk Ownership - is the financial standard for measuring the complete cost of building risk. It was introduced by Novem and co-developed with a Global Digital Energy & Building Services Company and a Global Commercial Insurance Company. Where traditional Cost of Risk captures what the insurer records, TCRO captures what the portfolio actually costs - including every category of financial exposure that COR misses. Why doesn't COR capture the full picture? COR is an insurance construct, designed to measure what insurers see: claims, premiums, and deductibles. It was never designed to capture operational costs, capital inefficiencies, or reputational exposure. TCRO was built specifically for institutional portfolio operators who need a financial model that reflects their actual risk burden - not just the portion their insurer records. How is the TCRO Calculator calculated? The calculator produces a directional range based on aggregate outcomes from institutional portfolio operators. It is designed to illustrate the scale of hidden TCRO - not replace a formal assessment. A full TCRO measurement is produced through platform deployment and portfolio-specific data integration. Can any organization apply TCRO? Yes. TCRO is a vendor-neutral framework. The whitepaper is available for download. Novem is the Property Risk Platform built to implement it, generating the continuous data record that makes TCRO a live measurement rather than a one-time estimate. Get Started ## Know what failure costs *before* it happens. Download the TCRO framework or book a session to see what it surfaces in your portfolio. [Download the Framework](https://www.novemdigital.com/resources/#white-papers) [Book a TCRO Session](https://www.novemdigital.com/../get-a-demo/?from=tcro&hsLang=en) Novem. Failures are Predictable. Stop guessing ## Failures are Predictable. See what is about to fail in your portfolio, and what it will cost, before it does. [Estimate Your Savings](https://www.novemdigital.com/estimate-your-savings/?hsLang=en) No thanks Contact Novem ## How can we help? Pick the path that fits where you are. Every route reaches our team. [Estimate Your SavingsSee what predictive operations could save your portfolio. Reviewed by our team.](https://www.novemdigital.com/estimate-your-savings/?hsLang=en) [Book a DemoSee the platform live and what it surfaces in your portfolio on day one.](https://www.novemdigital.com/get-a-demo/?hsLang=en) [Talk to an ExpertHave a question first? Reach our team directly and we'll point you the right way.](mailto:connect@novemdigital.com) Ready to see what surfaces in your portfolio? [Estimate Your Savings](https://www.novemdigital.com/estimate-your-savings/?hsLang=en) [![Novem, Property Risk Platform](https://www.novemdigital.com/hubfs/raw_assets/public/NovemZulbera_27/images/novem-logo.svg)](https://www.novemdigital.com/?hsLang=en) Novem is a Property Risk Platform that makes building failure predictable, so CFOs and asset owners can reduce Total Cost of Risk Ownership (TCRO), lower insurance costs, and protect net operating income (NOI). Headquartered in Vancouver, Canada. [connect@novemdigital.com](mailto:connect@novemdigital.com) [LinkedIn](https://www.linkedin.com/company/novem-digital/) Platform - [Platform](https://www.novemdigital.com/platform/?hsLang=en) - [TCRO](https://www.novemdigital.com/tcro/?hsLang=en) - [Estimate Your Savings](https://www.novemdigital.com/estimate-your-savings/?hsLang=en) - [Book a Demo](https://www.novemdigital.com/get-a-demo/?hsLang=en) Industries - [Commercial & Mixed Use](https://www.novemdigital.com/industries/#commercial) - [Seniors Living & Multi-Family](https://www.novemdigital.com/industries/#seniors) - [Data Centers](https://www.novemdigital.com/industries/#data-centers) - [Recreational & Venues](https://www.novemdigital.com/industries/#venues) Resources - [Case Studies](https://www.novemdigital.com/resources/#case-studies) - [White Papers & Guides](https://www.novemdigital.com/resources/#white-papers) - [Insights](https://www.novemdigital.com/insights/?hsLang=en) - [Press Releases](https://www.novemdigital.com/resources/#library) About - [Company](https://www.novemdigital.com/about/?hsLang=en) - [Partners](https://www.novemdigital.com/partners/?hsLang=en) - [Become a Partner](https://www.novemdigital.com/become-a-partner/?hsLang=en) - [Careers](https://www.novemdigital.com/careers/?hsLang=en) - [Contact](https://www.novemdigital.com/contact/?hsLang=en) - Data Sources - 1 Novem / industry data - 2 [Aon Liquid Damage Report, 2024](https://www.aon.com/getmedia/6deff800-90ec-436c-9bcc-d1ac5c93e1d7/2024-Liquid-Damage-A-Significant-Cause-of-Property-Losses.pdf) - 3 Novem / industry data - 4 [ABB Value of Reliability Survey, 2023](https://www.canadianmanufacturing.com/manufacturing/abb-survey-reveals-unplanned-downtime-costs-295471/) © 2026 Novem PRP. All rights reserved. Failures are Predictable. [Made with ♥ by Zulbera](https://zulbera.com) ```json { "@context" : "https://schema.org", "@id" : "https://novemdigital.com/tcro", "@type" : "WebPage", "description" : "TCRO is the industry-standard framework for measuring the full financial burden of building risk — introduced by Novem.", "isPartOf" : { "@id" : "https://novemdigital.com" }, "name" : "TCRO — Total Cost of Risk Ownership", "url" : "https://novemdigital.com/tcro" } ``` ```json { "@context" : "https://schema.org", "@type" : "FAQPage", "mainEntity" : [ { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "TCRO — Total Cost of Risk Ownership — is the financial standard for measuring the complete cost of building risk. It captures the costs that traditional Cost of Risk (COR) does not measure: downtime, maintenance inefficiency, compliance overhead, reputational exposure, and capital timing losses. Introduced by Novem and co-developed with Global Digital Energy & Building Services Company and Global Commercial Insurance Company." }, "name" : "What is TCRO?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "COR measures what your insurer records. TCRO measures what your portfolio actually costs. For most institutional operators, the gap between those two numbers is the largest unmanaged line item in your financials." }, "name" : "What is the difference between COR and TCRO?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "TCRO was introduced by Novem and co-developed with Global Digital Energy & Building Services Company and Global Commercial Insurance Company." }, "name" : "Who created the TCRO framework?" } ] } ```