Inside-the-Sixth-Risk-Managers-Forum

Inside the Sixth Risk Managers Forum: Abu Dhabi, 13-15 November

One of the many highlights of our Global Conference is the Risk Managers Forum. This session is available only to specially invited risk managers, giving them space to openly discuss the opportunities and challenges that lie ahead for their profession.

Over previous years, the subjects of AI, ESG, regulation and the role of the risk manager have been rigorously discussed by risk and insurance managers from some of the world’s largest companies.

This year, the Forum will be moderated by our Risk Managers’ Practice lead, Maurizio Castelli, current CEO of Augustas Risk Services and former Director of Group Risk Management at Pirelli, and CEO of the Group’s Captive. He is also a former general secretary and president of FERMA, and a past president and chairman of IFRIMA, the Worldwide Federation of Risk Management Associations.

The Brokerslink Risk Management Practice (RMP) brings together risk management skills, knowledge and expertise from across our global network of specialists. The practice provides a range of services including risk assessment, risk inspection, enterprise risk management (ERM), risk analysis, loss control, captive management and business continuity.

As we look forward to this year’s session, we asked Maurizio to share some of his insights into what risk managers will be discussing in November, and why a strong risk management offering has become a vital differentiator for brokers.

 

AI and ESG were two of the biggest themes for discussion at the 5th Risk Managers Forum in Sao Paulo - what do you expect to be at the top of the agenda for this year in Abu Dhabi?

 

I expect risks related to the socio-political landscape to be at the top of the agenda this year. Growing state fragility, armed conflicts in various regions and concerns about a possible conflict contagion, as well as the numerous “frozen” conflicts at risk of heating up. These factors could lead to major humanitarian crises. At the same time, the cost-of-living crisis remains a major concern along with the risks of inflation and economic downturn.

However, AI and ESG-related risks are also still very high on the list and I’d still expect them to be on the agenda this year. In particular, AI-generated disinformation is seen as a factor which might potentially further widen socio-political divides. In an “election year”, involving billions of people in several countries across the globe, the widespread dissemination of disinformation may undermine the legitimacy of newly elected governments, resulting in violent protests, hate crimes, and terrorism. As far as ESG, environmental risks continue to dominate the risk landscape and extreme weather is still ranked as a top risk. Unfortunately, there is still disagreement about the urgency of action and this implies the risk of delaying intervention, potentially leading to irreversible catastrophic changes.

The interconnections existing among all of these risks remain a critical aspect, with AI, probably being the “most pervasive” factor. We have entered the multi-crisis era, and this is not going to end easily. In such a complex period, stretching our adaptive capacity to the limit, a more positive path can only be found through incisive actions to address global risks.

 

Why has it become so vital for brokers to bolster their own risk management offering to their clients?

 

Insurance is just one of the many tools companies use to manage their risks. By buying insurance, they transfer some of their risks to a third party (the insurer). Selling the best possible insurance policies is what (good) brokers have always been good at doing.

However, insurance is not enough, more and more companies want to have an integrated approach to the management of their risks. Their preference is to get all the support they need from one single source if possible. Brokers who are not able to support their clients in this direction run a significant risk of losing existing clients and not gaining new ones.

 

Can you give any success stories of the Risk Management Practice (RMP) in action?

 

The RMP can be a success factor in many different ways.

It can allow brokers to win business with prospects who would otherwise never become a Brokerslink client, e.g. they have their own “historical” broker and no intention of changing. As a practice, we recently presented a prospective client with a catalogue of Risk Management services; they were not aware of these capabilities, and were keen to test us as an alternative to their historical broker. They needed a provider for global Loss Prevention and Risk Engineering services and thanks to the geographic spread of the members of the practice with numerous engineers located strategically around the world, we have been able to offer them this service on a worldwide basis. We entered a bid along with 3 other competitors and we won. It’s a big contract and that is now being renewed year after year. They appreciated our services and professionalism so much that they also invited us to bid for a Business Impact Analysis study, and again we won.

A second way is “cross-selling”, i.e. with existing clients, adding new sources of revenue, by offering them risk management services.

The third and probably most important one is “retention”. Clients who are looking for RM services now expect to get them from the same source as the traditional brokerage service; thanks to the RMP this is now possible. We have several success stories on Cross-Selling and on Retention and this is growing more and more each year.

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