Risk Management Flurry

The 45th annual Risk and Insurance Management Society (RIMS) conference opens in New Orleans this weekend so it’s no surprise that a rash of risk management surveys are being released this week. Two of the highlights are from leading brokers Marsh and Aon. A study by Marsh reveals that the majority of national oil companies do not fully understand the emerging risks they face and how to manage them. Among the top five risks identified by the oil companies one in particular stands out: environmental impact of operations. At last it appears the climate change issue is on the radar screen. Meanwhile, Aon’s first Global Risk Management Survey reveals that damage to reputation is the number one risk faced by multinationals today. Business interruption is cited as the second key risk, with 30 percent of survey respondents  reporting they are unprepared. Third party liability risk comes in at number three, as the U.S. compensation culture spreads. For more information on insurance and risk management for businesses, check out I.I.I.’s insuring your business website.  

One thought on “Risk Management Flurry”

  1. The Marsh white paper “The Changing Face Of Risk Management” confirms much of what I hear in the industry as well as the experience of my organization’s efforts to promote Enterprise Risk Management (ERM) to our clients.

    Currently according to their analysis approximately 4% of the companies surveyed have fully implemented ERM.

    Implementation of ERM by a single Chief Risk Officer (CRO) is a tall order given the diversity of risk (e.g. strategic, hazard, business and financial) and all the techniques, markets and products that one can engage to strategically manage these risks. Currently this involves individuals and departments that collectively bring a wide depth and breadth of skills and knowledge.

    However, there would clearly be an advantage to a Risk Manager who possesses strategic risk management skills. It looks like an excellent opportunity for our Risk Management educational institutions to develop a single curriculum that would fill this need.

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