In the second of our series focusing on Crawford®’s latest report, Scenario Planning and adapting to emerging risks – A risk managers essential guide, we review an interactive workshop held at July’s Airmic conference in Liverpool…
In advance of this year’s Association of Insurance and Risk Managers in Industry and Commerce (Airmic) Conference, Crawford & Company® developed a unique report to guide risk managers on scenario planning and adapting to emerging risks.
In support of this important topic, Senior Vice President, Global Markets, Neil Allcroft, chaired an interactive workshop in Liverpool to emphasise the point that “forewarned is forearmed.” The workshop was attended by representatives from insurers, brokers, risk and captive managers and journalists.
Analysing three out of six key risk areas covered by the report, political violence, natural/man-made catastrophes and cyber risks, Neil started the interactive presentation explaining that managing risks is not all about insurance: “Boards need to communicate a meaningful risk appetite, acknowledge operational realities and develop a common language around risk,” he explained.
To reflect the reasons why risk management should be a part of the corporate discussion, attendees were invited to take part in activities including “natural catastrophe pairs,” a “cyber post-it quiz,” and “political violence happy families.”
The first topic workshop tuned everyone’s attention into political risk. Rob Kleinveld, vice president, Global Markets and Ian Hasson, head of Forensic Accounting, Europe, provided delegates with country-ranking cards, which helped them to understand low-, medium- and high-risk countries for business across the globe. They then looked at insurance policy limits and exclusions businesses can experience if operating within high-risk countries, such as the effects of being denied necessary physical access to certain territories where a claim needs to be managed. Rob and Ian shared the experience of Crawford’s adjusting team when it dealt with similar cases.
The cyber risk topic invited delegates to discuss the question of who is responsible for cyber breach in a company. Delegates used sticky notes to analyse whether IT, risk managers or chief executives were to be held responsible. The workshop finished with a debate on the best actions to take following a breach and Douglas Mower, director, Global Markets, offered such options to choose from as quarantining the whole system or replacing the new factory-setting system. However, he suggested the right answer was much simpler than that – “waiting for experts to come in.”
The last section of the workshop was on natural and man-made catastrophes, during which delegates were encouraged to use cards with questions and match these with labels holding the right answers of catastrophe statistics.
Statistics revealed that 2014 had the highest number of recorded national catastrophes across the world. This highlighted the importance of catastrophe risk management to be on agenda for the risk managers. Nick Stretton, vice president, Global Markets, and Andrew Hoyle, director, Major & Complex Loss, cited that preparation by ongoing scenario planning is the only way to be fully ready to tackle these events. “Forewarned is forearmed,” Stretton added.
The workshop finished with some specific feedback from attendees, who overall said they found the format interactive, engaging and informative. And the team’s hard work for preparation paid off when one of the delegates acknowledged the effort: “Time and effort has gone into planning this – it shows.”