- New report reviews emerging risk climate facing global corporates
- Corporates increasingly use pre-loss planning to guarantee claims support
- Six risk groups analysed from Pandemic, to Political Risk
Companies should consider pre-loss and scenario planning in their risk management programmes according to a new report from global claims management specialist Crawford & Company.
Published in advance of the Association of Insurance and Risk Managers Conference 2015 which opens today, Scenario planning and adapting to emerging risks; A risk manager’s essential guide, analyses six key risk areas to reveal the latest practice by corporates.
Neil Allcroft, Senior Vice President, Global Markets at Crawford and Company was one of the report’s authors; he explains the thinking behind its creation.
“The process of Enterprise Risk Management has evolved significantly over the last five years,” says Neil. “The issues emanating from the financial crisis, the fragile global economy, a nervous Eurozone, volatility in raw materials pricing and increasing political unrest, have created an environment in which risk across corporations, particularly multinationals is more varied and far reaching than ever.
“Against this backdrop and picture of the current drivers of Enterprise Risk Management, it’s important we have insight and preparedness for the emerging risks that businesses are confronted with.
“In view of this we decided to analyse six key risk areas, which Crawford views as the half dozen which should be on most board room agendas at some point. The Guide looks at macro trends and claims experience from across our company’s global operation and we also made sure to review the observations of sector experts from the insurer, legal and broking markets, many of whom have unique insights that can help build a clear overall picture.”
Neil adds how the Guide pinpoints these emerging challenges and explains why scenario planning needs to weave itself into the risk management plan. “Threats to reputation and customer data, as well as the relentless march of regulators, the unpredictable perils of political violence and the vulnerability caused by potential supply chain failure, all require careful understanding of the likely scenarios which can cause losses. In many cases these are intangible risks, but this industry has become skilled at applying solutions in the context of scenario planning and pre-loss management; this report provides evidence of how that happens.”
To download a copy of the guide, click here.