Zurich Financial Services has announced “key enhancements to its Global Risk Assessment Module (GLORAM). The program is designed to assist businesses in coping with their risk management calculations.
Zurich described GLORAM as a “fact-based management tool which simplifies the results of complex risk modeling in an easy to understand way. The tool has been further improved following the lessons learnt from the financial crisis and is designed to help businesses with strategic decision making and risk mitigation in the face of difficult and constantly changing business conditions.”
Daniel Hofmann, Zurich’s Chief Economist explained that the “enhancements have been designed to help businesses build risk understanding that can be cascaded throughout an organization, ensuring strategic rationales are shared within the C-Suite and beyond. It gives senior executives a concrete, scaled illustration of risks, facilitating simple comparisons to be made across regions and providing a visual interpretation of how risk chains may apply.”
Zurich also noted that it had employed the enhanced model to gather and input data for the annual Global Risks Report, which was recently published by the World Economic Forum [See IJ web site – . https://www.insurancejournal.com/news/international/2010/01/15/106639.htm]. Hofmann presented a number of those conclusions at the presentation conference.
He also noted that “GLORAM provides the potential to hedge risks in order to protect assets, earnings, operations, and personnel. Most importantly, it enables a unique risk context to be established for major developments or plans, without taking up unreasonable amounts of senior management time and resources.”
The World Economic Forum’s report stressed both the interdependence and the broad nature of the underlying risks which potentially impact all global economies. Hofmann took up that theme, explaining that the “financial crisis has reminded us rather painfully that risks cannot be analyzed in silos. We must broaden our perspective and accept that the definition of global risk goes beyond its geographical context.”
He added that the model represents “Zurich’s solution” and the insurer’s commitment “to continue working closely with its customers to help create the presence of forethought, enabling them to calmly mitigate business threats wherever possible.”
Source: Zurich Financial Services – www.zurich.com
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