Businesses are facing more risks than ever before says AON chief
Businesses need to understand and develop the tools and solutions necessary to succeed in the face of the ever-accelerating change and complexity of today’s risk landscape according to Lambros Lambrou the CEO of AON Australia. He says that the breadth and variety of risks businesses now face requires them to mitigate against a wider range of issues than ever before, from white-collar crimes to cyber risk and highlights the issue of cyber crime: “The potential ramifications of cyber risk, which has been described as “the asbestos of risk”, are widely underestimated, particularly here in Australia where we are demonstrably behind the curve when it comes to even a basic understanding of the issues. This applies not only when it comes to individuals’ privacy, but for the integrity of entire organisations. That includes major liability issues at the Board and Director level right through to the very real threat that cyber risk poses to undermining everyday operational capability.”
Insurance industry increases business process outsourcing
A report by the Everest Group reveals that small and medium insurance firms are increasingly outsourcing business processes. It says that the global
insurance business process outsourcing (BPO) market has grown steadily over the last three years to reach US$2.7 billion but while the market for large business requirements is mature, there is significant growth in the small and mid-sized buyers. The main challenges that insurance firms are seeking BPO for include macroeconomic challenges; regulatory challenges; fraud increases; and keeping up with technology. Everest says that analytics is a growing area that insurers are seeking outsourced assistance with.
Manmade insulation product ‘unlikely’ to pose same risk as asbestos
German scientists say that a manmade insulation product is unlikely to pose the same risk as asbestos, despite some studies suggesting it could be a carcinogen. Refractory ceramic fibre, or RCF, is widely used in blast furnaces and other installations requiring resistance to high temperatures. Tests in animals have suggested that the material could cause cancer, however human tests have found no such link. A new study by Institute of Molecular Pharmacology and Toxicology in Munich has found that there is ‘probably’ no risk from RCF due to its molecular structure. However other studies have found that if it is used alongside asbestos then certain health risks from that material are four times greater. The German study says that RCF manufacturers are monitoring workplaces where the fibers are used to ensure up to date and accurate data on the risks.
