Rapid market and environmental changes have exposed organisations to greater threat and uncertainty, requiring them to consistently upgrade their risk mitigation strategies.
In the Asia-Pacific region, one leader in this area is the Risk Management Institute of Australasia (RMIA). In an interview with Insurance Business, RMIA’s chief executive, Simon Levy, explained the industry association’s purpose to offer learning and growth opportunities to its members, especially those in the early stages of their career.
“We provide members with access to the most respected risk management thought leaders through our events and webinars. We provide accreditation and certification, as well as continuing professional development. [We] advocate for standards, ethics, and best risk management practice and culture within organisations,” he said.
Considering the relationship between risk management and insurance, Levy drew attention to security risks involved in remote working – specifically the impact on systems privacy and data integrity – as well supply chain and logistical limitations that have led to structural changes and are increasing the pressure that businesses face from governments, investors, and society as a whole. He said that the current risk management context gives insurance brokers “a unique opportunity to provide more powerful insights, advice, and guidance that stretches beyond the financial”.
Looking at the future of risk management, Levy stated that many organisations tend to remain in silos and do not have a firm grasp of environmental scenario planning and consequence management.
“The boards of these organisations will be calling on their CEOs and management to speak to their brokers. They’ll be testing the wording in their liability [insurance policies] ... They’ll want to know if they’re on the receiving end of a malware attack. What will happen if the ransom is paid? These are the areas that the insurance industry should focus on in the future, helping organisations understand the threats and consequences through an independent lens. It will become less about broking and more about advising.”
To meet the demands of this enhanced advisory role, insurers are expected to be “more knowledgeable about strategic and operational risk management components by reviewing the holistic range of outcomes”.
In general, risk management professionals can become adept at applying relevant principles through specialised training, such as that provided by the RMIA. Levy described the training as contemporary, aligned with industry benchmarks and international standards that provide opportunities for professionals to obtain up-to-date qualifications and expand their networks.
You can watch the whole interview with Simon Levy by clicking here.
