IAG has been praised by a global
Deloitte study as the best practice example of business and risk management interaction.
The IAG model, which sees the chief risk officer report to the CEO and the risk subcommittee of the board, was singled out as scalable to any size organisation as part of Deloitte’s global risk survey.
The survey also found that businesses should look to shift their attitudes on risk and move from a tick-the-box exercise to linking risk with business strategy in order to improve performance.
For brokers, conversations with clients of any size can highlight how good risk management can help businesses grow safely with the correct cover.
“By being more proactive and deliberate in assessing risks, organisations are able to use their new understanding to differentiate and create value, not just protect it,” Peter Matruglio, Deloitte risk transformation leader said.
IAG managing director and CEO,
Peter Harmer, who was interviewed as part of the report, said that risk should be an important part of any business strategy.
“Business is all about risk and reward, so strategy and risk are two sides of the same coin,” Harmer said. “Strategy discussions in the firm very quickly turn into conversations about risk.”
The Deloitte report, called Taking aim at value: Avoid overconfidence and look again at risk, surveyed 300 global executives at some of the largest businesses in the world and found that while nine in 10 think value creation should be linked to risk, only one in five are implementing necessary improvements.
Even with a global mark of approval, Harmer stressed that IAG is not resting on its laurels.
“We are taking a hard look at our risk management, and we’re realising we have some work to do,” Harmer continued.
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