Working together to manage risk

Business meeting

As natural catastrophes and a myriad of global risks put the spotlight firmly on risk management, find out how the role of risk managers is evolving to deliver the solutions your customers need.

Risk managers, accustomed to the spotlight only when disaster strikes, are receiving sustained attention lately due to an increase in natural catastrophes and a myriad of global risks that gained momentum in recent years. Over the last decade, they have emerged from behind the scenes to become more closely tied to central projects and growth initiatives within their industries and organizations, and while this team of experts was always deemed important, there is currently a distinct shift taking place that is fueling the department's progression.

This evolution is in conjunction with swift international growth, as well as a number of mergers and acquisitions that have generated opportunities across all continents. To manage these developments successfully, effective risk specialists are spending more time on preventative maintenance by devoting time at the onset to educating and training their colleagues. Part of this practice now includes the integration of social networking, which affords risk managers the tools to gain insights and opinions directly from their publics.

An invaluable technologic–al advancement, social networking aids in providing a 360-degree view of an organization’s stability and is now crucial to a thorough risk assessment.

Since the economic downturn, however, the need to get everyone more involved in this process has amplified. Business now tends to grow more organically than before, as many insureds have cut back on maintenance. As such, it is important for risk managers to work with their clients for the best cost-effective solutions, especially given that there is more pressure than ever to demonstrate conservative spending. Naturally, spending is more easily justified when the return on investment is made evident, so it is imperative to get the attention of the C-suite by sharing the true cost of the claim, its surrounding expenses and demonstrating the ultimate impact on profitability.

Because the effect of disaster has far-reaching ramifications, risk specialists rely on strong partnerships for successful management. Brokers are a fundamental part of this equation, as the variety of claims stories to which they have access can later serve as examples that offer valuable lessons.

The most valued brokers have an in-depth understanding of their clients’ business needs and differentiators, and with those insights are able to proactively suggest the best course of action in any given situation. Ultimately, a harmonious partnership is rooted in the understanding that everyone must work together to keep the organization stable, as well as in the commitment to develop the creative solutions best suited for the company’s operations.

With increased integration in operations, the role of the risk manager is steadily gaining recognition and value. It will be important to continue having conversations with clients about risk improvement to further open their eyes to this vital aspect of their operations and to deepen their appreciation of the broker’s role within it.

If you would like to know more about how RSA, brokers and risk managers can work together in partnership contact your local GSL contact.