Interest rates, volatile currency markets and changing regulations are the top three things keeping risk managers from their sleep. Those are the conclusions summarized in an article on the Lloyd’s web site that revues the findings of the “The Risk Frontiers Survey”.
The survey, sponsored by XL Group, at a recent conference of the Federation of European Risk Management Associations (FERMA), polled 75 risk managers in 11 countries.
It’s these overwhelmingly ‘macro’ business risks that were cited by the risk managers who took part that are their biggest worries.
Other areas causing concern were fast changing regulation, political risk and how to deal with torpid domestic demand. Not normally areas that the average risk manager would become involved with.
Adrian Ladbury, Editor‚ Commercial Risk Europe , commented: “Europe’s risk and insurance managers are being dragged into this big risk picture and it is a real challenge because it is very different from the world of insurable risk management.
“But the simple fact is that structured and enterprise wide risk management is more important than ever before as Europe’s corporations attempt to fight their way out of recession.”
Jason Harris, Chief Executive, International Property and Casualty insurance at XL Group, explained: “Recent, high profile Enterprise Risk Management challenges have pushed the issue of risk to the top of the boardroom agenda. Big strategic decisions are being made at all levels and it is clear that the risk management and insurance community has a role to play if we are to help ensure that the right decisions are made at the right time.
“Companies are looking to insurers for products that respond to the changing nature of risk and meet the needs of their businesses. Products that provide, for instance, coverage for complex global supply chains or coverage for cyber risk. If the risk market wants to avoid becoming irrelevant to businesses, insurers need to provide innovative products which are fit for purpose.”
Source: Lloyd’s of London