IIG Insights: Risk Management
#YourIIG hosted the third final insights for 2018 on 12 September at GIBS, themed Risky Business, topic experts shared knowledge around Risk Management in the short-term insurance sector. The support from sponsors Chubb, Marsh, Old Mutual Insure and Sasria SOC Ltd, all committed to the education & professional development of insurance professionals.
Letlhogonolo Tau, IIG Education Councillor, was the esteemed MC for the day and ensured that proceedings were followed with a special welcome of IIG Councillors and Class of 2018.
The Insights session was opened by Marcel Wood, Head: Risk Improvement Services at Hollard Insure. Marcel highlighted the difference in the insurance landscape with his “Then and Now” overview which saw practical effect of effective Risk Management in our industry today and how the structure has changed over the years.
Marcel touched on Cyber Risks, the Impact of Natural Catastrophe’s with focus on Fire Risks, which has a huge impact on the SA Market. Marcell highlighted major risk concerns, the processes currently in place and the overall impact on business for insurers and reinsurers. It was clear that Compliance and Adherence to regulation is vitally important when managing risk for clients. Marcel highlighted solutions for our industry encouraging a new level of discipline to managing risk.
Our 2nd speaker was Suzanne Harrop-Allin, Chief Risk Officer from Sasria. Her presentation was entitled “Tackling Risk in an Unstable Environment”. Suzanne spoke about events that had an impact on the SA economy including major international occurrences such as the election of Trump.
Suzanne highlighted the areas of risk that Sasria SOC monitors and the impact of these risks. Strikes and Protests are currently having a significant impact and has been the cause for a lot of uncertainty in our country. She stated that “underwriting risks are all interconnected in South Africa such as land reform, political risk and unemployment” which allowed the guests to understand what the purpose of risk management is for Sasria.
Suzanne closed by saying that “We can be proud of South Africa regardless of current uncertainty, we just all need to ensure that we mitigate our risk effectively”
Our 3rd speaker for the afternoon was Peter Links. Peter is Practise Leader for Strategic Risk Consulting at Marsh. Peter took the delegates through the process of risk management, the relationship between principles, framework and risk treatment. A deep dive into this showed us the ISO 310000 Components of the Principles. Peter noted that it is best to customise risk management to the nature of the business and ensure that the industry specific regulations are adhered to for that risk strategy.
Risk strategies need to be dynamic and agile. Important components were also noted as always using the best available information, consider human and cultural factors and have continual improvement.
There is no strategy without risk! The risk manager in an organisation is a strategic influencer, they need to be a strategy champion!
Our last speaker for the day was keynote speaker Chantell Illbury. Chantell is a best-selling business author, and a world-renowned business and scenario strategist.
The objective of Chantell’s talk was to construct strategic intelligence and better understand risk management. Chantell noted that ‘risk’ becomes threat or opportunity depending on the nature of business and context of said risk. It’s important to develop strategic intelligence within a company to define a process around risk management and culture.
The velocity of risks connecting are more frequent than it was in the past, risk managers need to understand how strategy and risk are connected. Very simply, strategy is setting future direction, tactics are how to get there, and risk is the effect of uncertainly on objectives.
South Africans need to take global situations into consideration whilst mapping out risk profiles. A few new “normals” globally include; Globalisation, Digitalisation, Individualisation and Technology Conversion.
We also looked at a few South African scenarios currently in play. A few key flags to watch for our country include; crime and corruption, quality of the education system, healthcare and general infrastructure, style of leadership, entrepreneurship/genuine economic freedom & land reform.
In closing Illbury explained the correct type of thinking when defining risk strategies with basic two-phase process:
- we need to Define the Game. To define the objectives of a risk strategy one needs to have a deep and thorough understanding of Context, Scope, Players, Regulation, Key Uncertainties and Potential Scenarios.
- Playing the Game, involves an accurate SWOT analysis, defining and understanding the Options, Making Decisions and the meaning of “Winning”.
Two other effective tools that can be used; the PESTLE tool for uncertainties and the Ethical Compass were described.
Chantell closed the session with a final message: “Be Adaptive, Agile and Always question your thinking!”
It was a fascinating Insights event and #YourIIG is grateful for all knowledge shared by the speakers.
After formalities guests were welcomed to a networking cocktail evening, sounds of smooth jazz filled the afternoon air and whilst the sun set delegates enjoyed snacks, drinks and meaningful conversations with one another.
Thank you to education sponsors for making this event possible: Chubb, Marsh, Old Mutual Insure and Sasria SOC Ltd.
Article by: Chelene Naidoo – Co-opted member: Marketing portfolio