Tuesday’s ERM (enterprise risk management) Forum in London saw the release of Airmic’s respective reports on supply chains and risk management.
The supply chains guide, which was produced in association with boutique specialist (re)insurance broker McGill and Partners, answers the following 12 questions:
With the theme “keeping up with the pace,” the 19-page paper aims to provide a toolkit to assist directors in understanding and keeping pace with supply chain challenges, while also considering how well the insurance industry is responding to them.
Francis Kean, financial lines partner at McGill and Partners, said: “The challenge faced by directors in discharging their non-delegable duty to supervise a company’s affairs is especially acute when it comes to mission-critical elements of the supply chain.
“That is due to a web of increasingly complex and unpredictable risks including geopolitical, cyber-related, and reputational. This guide offers directors an opportunity to stand back and re-examine some basic but important questions.”
Airmic chief executive Julia Graham, meanwhile, cited the “fast-changing and volatile world we operate in,” amid which supply chains are adapting and reshaping.
“Boards are considering the risks associated with their supply chains and closely examining the cost benefits of current practice and changes which might be required to meet the purpose and strategic objectives of the organisations they govern,” stated Graham.
As for the risk management guide that was circulated during the ERM Forum, the 16-page document takes a deep dive into risk management, risk assessment, risk analysis, risk evaluation, risk reporting & communication, and risk treatment.
The resource also has sections on monitoring and review of the risk management process, as well as the structure and administration of risk management.
“Risk management continues to be a rapidly developing discipline, and there are many and varied views and descriptions of what risk management involves, how it should be conducted, and what it is for,” wrote Airmic in the report.
“Some form of guides and standards are needed to ensure that there is an agreed: terminology related to the words used; process by which risk management can be carried out; organisation structure for risk management; [and] objective for risk management.”
Airmic, a UK association, has more than 450 corporate members and over 1,500 individual members.