Risk Management Systems Design and Implementation
The better the risk appears to the insurance community the higher their appetite to insure it. The greater the competition to insure your risk the more competitive the price and terms! It is not only the largest businesses that can benefit from demonstrating their strong commitment to risk awarenesss, loss prevention and risk management in reducing their insurance costs.
It is important to recognise the additional costs (not covered by insurance) that can hit the business from incidents. In many cases these can exceed the actual amount recovered from the insurer (even though they are not always directly visible to the Customer).
As we prepare for the implementation of Solvency II (now pushed back to 2014) we must be clear that this requires Insurers to reflect in their premiums the levels oif risk management within their insured customers. It is also clear that the Solvency II requirements will require an additional capitalisation in many insurers and in present times that can only come from an increase in insurance premiums. It is unlikley that Insurers will want to hit profitable, well managed risks with additional premiums and hence those businesses without the ability to demonstrate a formal risk management system are lilely to be targeted for the premium increases.
Further, the recent revision to the Combined Code, The Corporate Governance Code [June 2012] now expressly requires that Boards formally evaluate the risks facing their company, establsih the risk appetite and assess the Risk Management Systems in place to ensure they are adequate for th task.
PBRM has over 17 years experience of facilitating the design, implementation and maintenance of key risk management systems including:
- Fire Risk
- Outsource Supply Chain
PBRM can develop strategy proposals for these areas, establish Risk Management Systems and reporting. We can establish the key processes in line with the Client’s agreed level of investment / interest.
We can also conduct audits of the Supply Chain to identify any risk issues and deliver proposals for contingency management or other form of balance sheet protection coupled with a possible BCP product to effectively manage and mitigate the downside.