CNA Hardy roundtable concludes interconnected risk requires risk management rethink
At a roundtable at CNA Hardy conducted in the run-up to BIBA attended by...
...John Ludlow, (AIRMIC CEO), Jonathan Blackhurst (Group Head of Risk Management, Capita), Ailsa King (Chief Client Officer, Marsh UK) and CNA Hardy’s Dave Brosnan (CEO) and Rhona Beuge (VP international specialty), the conclusion of the group was clear.
“In today's interconnected world, no company is insulated from what's going on in other parts of the world politically, economically or technologically. Tangible and intangible risk proliferate and that means risk management requires a rethink” said Dave Brosnan.
Jonathan Blackhurst said:
“Interconnectivity brings blind spots that can cause problems and business failures. If something has gone wrong, it’s not the tried and tested area of risk that problems will have come from, it’s something connected to the risk they thought they had protected against that has crept in below the risk radar. Today’s risk could come from a supplier, or an element of technology or a seemingly unconnected risk in the outside world that caused the issue.”
Ailsa King, described how technology risk can impact the supply chain.
“When you think about how goods move around the world, we are still reliant on large container ships. When these ships dock in harbours the majority of unloading is now automated and tech driven. If something goes wrong with the technology, this can create supply chain risk as goods won’t reach their specified destination in the expected timeframe. So there are still traditional marine and cargo risks, but the tech liability and supply chain risk are new.”
Commenting on the findings of the roundtable, Jason Beelders, Head of International Solutions, CNA Hardy said:
“The world is becoming smaller and regulations are becoming much more aligned across territories - as seen in more connected regulations across Africa and the Middle East. However, different markets, countries and cultures will provide different answers to the information requested and knowing how to navigate the information, what questions to ask and how to navigate the data is critical.
“Too often, risk managers and insurance buyers seek to address tangible property exposures at a local level and then address the less tangible tech and liability exposures on a remote basis, usually to save money and admin. Leaders of businesses with an international footprint need to think about protection in the round, the pre loss planning and risk mitigation solutions that are required, not just the financial risk transfer, in order to address the borderless challenges posed by interconnected risk today.”