ACE European Group President Andrew Kendrick summarises the
implications of recent major research by ACE Group on the future of
risk management, and four big areas to watch this year.
- Busy management teams are struggling to keep pace with a range
of new and emerging risks that pose significant threats to their
business. This is the key finding from a major piece of research
undertaken by ACE European Group surveying 650 risk managers and
senior executives across a range of industries and based in 15
countries in Europe, the Middle East and North Africa.
- The 'big four' emerging risks named by over 40% of executives
surveyed as most likely to have a financial impact on their
business over the next two years, were supply chain/infrastructure,
environmental, cyber and directors' and officers' liability
- The global financial crisis has caused risk management to rise
up the corporate agenda, but emerging risks have not yet been
embedded in board level discussions on wider risk management
issues. 57% of respondents cite lack of management attention as the
biggest barrier to effective risk management, and this in turn
leads to lack of human resources and risk management tools and
processes to manage them.
- Today's risk challenges demand a cross-disciplinary approach,
with the risk function working closely alongside the business to
identify, assess and mitigate key exposures. Compounding this
complexity is that fact that risks are often interconnected: real
world events do not respect neatly delineated risk categories.
- Emerging risks create a number of obstacles to success, as they
combine to create a hugely challenging environment not just for
professional risk managers, but also for all senior executives.
Creating the right framework for enterprise risk management, and
building the knowledge and tools to track and mitigate all these
risks, is hugely challenging.
- If the insurance industry is to meet expectations of risk
managers and senior executives it will need to make a shift from
'product' to a 'service' mentality, and clients will need to shift
from a transactional to a strategic approach to their insurance
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the new normal: sustainable underwriting. Andrew Kendrick.
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Upon the door of every cottage... protecting the public in general
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Supporting strategic objectives or another compliance exercise?
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General insurance in the 21st century: meeting the challenges.
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