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 What is TCRO?
Co-developed with a Global Digital Energy & Building Services Company
Co-developed with a Global Commercial Insurance Company
6×
Your risk costs 6× more than your insurance report shows.
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
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 Digital · 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. From 19 consecutive outbreak weeks to zero — held for 12 months. Zero is a human outcome.

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.

1 10 assets 100+
Gross asset value, not insured value

Complete all four fields to see your estimated hidden TCRO range.

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
The world's largest operator of building infrastructure data — contributing the live physical telemetry that turns TCRO from an estimate into a real measurement.
20yr
Institutional claims history in the actuarial model
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 Digital 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 Digital is the 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 Book a TCRO Session

Novem Digital — Failures are Predictable.