> AIRMIC’S HARSH MARKET REPORT

> #CHANGINGRISK: WHY MODELS CAN’T

COMPETE WITH HUMAN EXPERIENCE
> TIM GRAHAM IS NO LONE WOLF
> THE EVER-RISING EXPOSURE FOR D&OS
> NASA’S DR DAVID GREEN: WE SHOULD
Risk and corporate governance intelligence FEEL OPTIMISTIC ABOUT RISK’S FUTURE

EDITION AIRMIC 2022

SINK OR
SWIM >
As the storm rages on around
us, businesses face wave after
crushing wave of threats, from
economic to geopolitical to
logistical. How do you build the
resilience needed to stay afloat

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AIRMIC 2022
ISSUE
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Helen Yates
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#ChangingRisk
The problem with
quant >P8
Contents
LEADER >P3
ESG? TIME TO DOUBLE DOWN
It won t be easy to monitor your clients
sustainability journeys and your own, but nobody
wants the activists nor the regulators at their door.
ANALYSIS >P4
> Harsh Market Report 2022: FUTURE OF BUSINESS >P18
Time for an industry level up FLOOD THROUGH A NEW LENS
Floods dominated the natural perils in 2022. Can
space radars give us the insight needed to get
VIEWPOINTS >P5 claims moving quickly
> Set for the SEC climate rules? A CHANGING CASUALTY MARKET
> Scenario testing: You can’t set it and forget it Investing in an enhanced casualty offering will
> Ukraine triggers further crises meet the demands of insurers facing high inflation
and an increasing litigious, socially aware world.
#CHANGINGRISK >P8
THE PROBLEM WITH QUANT D&O >P20
GRMSi s Daniel Roberts spins a cautionary tale of THE SEARCH FOR SHELTER
strong models meeting weak scenarios, and the Senior managers have never been more
lessons we can all take away about quantification. exposed. But is it possible to find adequate
protection
RESILIENCE >P11
RIDE OUT THE STORM SPECIAL REPORT >P23
High risk is meeting low resilience to create this GETTING A GRIP ON INTANGIBLES
perfect storm. Risk experts agree batten down The pandemic has focused our attention on
the hatches and prepare for further choppy seas. intangible risks. Getting a firm grasp of the data
remains a challenge though.
PROFILE >P14
YOU'LL NEVER WALK ALONE RISK LEADERS >P33
Incoming Airmic chair Tim Graham says no risk REASONS TO BE… CHEERFUL?
manager is an island so let s get networking. NASA s David Green believes advances in tech
combined with an open science approach are
ASIA >P16 cause to be optimistic about the future.
FEAR FACTOR ESG: JUST TAKE THE FIRST STEP
We dig into the latest survey results on Asia's top The ESG road can be daunting, but, says
risk concerns and ask does the region have a Dr Beverley Adams of Marsh Advisory, the
handle on sustainability? important thing is that you are on the path.
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ESG? Time to double down
No-one’s denying it. It’s a major challenge to scrutinise
your own sustainability practices and those of
your clients and suppliers. But this is what’s being
demanded and, ultimately, it could help you build the
resilience needed to survive this perfect storm.
C
limate activists outside the Lloyd’s
insurance market have been busy so far in
2022, using a variety of attention-grabbing
direct-action techniques. Most recently this
included building a giant fake oil pipeline
outside One Lime Street to protest Lloyd’s
role in the expansion of the Trans Mountain Pipeline in
Canada and the East Africa Crude Oil Pipeline.
For groups like Extinction Rebellion, change in the
insurance industry is not happening fast enough. They
accuse the market of greenwashing while they continue
to provide cover for heavy emitters.
An issue that is becoming increasingly high profile
in the insurance sector has implications everywhere.
It is one reason risk managers are so concerned about
the reputational consequences of failing to act on
ESG, according to this year’s Airmic survey.
As UK corporate risk and insurance managers meet
in Liverpool for the Airmic Conference in June, one
thing is certain, there is plenty to discuss and ESG
is more than just a buzzword. The floodgates have
not yet opened where climate-related litigation is
concerned, but it is inevitable they will.
As Marsh’s Bev Adams explains on page 35, one of
the challenges facing risk managers is knowing where to
start. Much of the measuring and management of ESG-
related risks already takes place, but not necessarily to
the standard required under new reporting frameworks
or in a coherent and joined-up manner. Rare is the firm
that successfully scrutinises its wider value chain to the
extent being encouraged under new EU laws.
Indeed, there is a risk that the immensity of the
challenge will mean certain aspects – such as climate
reporting for firms subject to TCFD, for instance will
be prioritised to the detriment of others.
There is a real fear that if corporates drop the
ball on any of their responsibilities as stakeholder
capitalists, they could see activists scaling their own
HQ walls or even face the wrath of the regulators.
That’s in addition to embarrassing headlines and
customers voting with their feet.
LEADER > AIRMIC 2022
EMAIL > helen.yates@nqsm.com
The insurance industry is learning how hard it is to
strike the right balance: to support clients at the start of
their own transition journeys, while insisting on the need
for tangible progress. And among the many external
pressures is the worst energy crisis since the ’70s.
The World Economic Forum is calling for urgent
action to prioritise the energy transition. “While
there are difficult decisions to be taken to align the
imperatives of energy security, sustainability and
“THERE IS A REAL
affordability in the short term, now is the time to
double down on action,” says WEF head of energy, FEAR THAT IF
materials and infrastructure Roberto Bocca. CORPORATES
Prioritising ESG means understanding how the risks DROP THE BALL
and opportunities manifest both now and into the future. ON ANY OF THEIR
It is a daunting but potentially rewarding task. Being a RESPONSIBILITIES
good corporate citizen is more than just slipping a few AS STAKEHOLDER
soundbites into the annual report. It is good for business, CAPITALISTS,
helping to build resilience and ensuring firms outperform THEY COULD SEE
their competitors in a volatile world. ACTIVISTS SCALING
Within Ukraine, the atrocities continue daily.
THEIR OWN HQ
Elsewhere, the full ramifications of the Russian invasion
have yet to be fully appreciated. It is anticipated that
WALLS.”
spiralling food costs could cause social and political
unrest in countries reliant on Ukrainian wheat imports.
The 2022 Airmic survey’s headline is: “Risk and
resilience in a perfect storm”. “A perfect storm is
typically understood to mean a disaster produced by a
combination of chance factors,” says Airmic CEO Julia
Graham. “However, the perfect storm created by climate
change has nothing to do with chance – we understand
many of the issues and we know what can be done.”
How to navigate the more immediate turmoil? ESG
will play an important role. In a recent webinar, Bruno
Dotti, ESG practice leader for Continental Europe at
Marsh, advised firms to accept less margin in the short
term and invest in alternative sourcing, reshoring and/
or stockpiling of raw materials. This will ensure they
are more prepared when the major disruptions hit.
“You need to have the risk function really embedded
in the business,” Dotti told StrategicRISK. “This is not an
issue for 2023, it’s an issue for now.” SR
www.strategic-risk-global.com < 2022 AIRMIC EDITION StrategicRISK 3
ANALYSIS > AIRMIC
Harsh Market Report 2022:
Time for an industry level up
Against the backdrop of eye-watering rates and disappointing capacity,
Airmic considers the work both insurers and risk professionals must do to
stay relevant and resilient in the face of fast-changing crises.
P
remium rates, and the scope of cover
and capacity, continue to disappoint,
according to the latest Harsh Market
Report from Airmic, although the survey
results suggest signs of ‘green shoots’
where the pace of the hardening is slowing.
But we are not out of the woods yet, and premium
rates for cyber are skyrocketing. A tenth of respondents
experienced rate increases of more than 400%.
INSURERS NEED TO SHAPE UP
The report is set in the context of growing discussions
on the future of the London market, with a view to its
post-Brexit and post-pandemic life. The pandemic-
driven surge in the use of digital technologies by
member organisations, many of which adjusted at short
notice to remote working, has accelerated the longer-
term trend towards digital transformation.
As respondents have underscored, current insurers
stand to lose business to more modern, agile insurance
competitors who are without legacy systems, unless
they also up their game in the digital sphere.
“The insurance model is changing,” concludes the
report. “It now more geared towards understanding risk
and managing it better. Climate change is expected to
cause a seismic growth in economic losses, and global
insurance premiums will reach record levels.
“The insurance industry needs to rise to the
challenge urgently. It needs to shift its focus from
protection to prevention. New technologies such as
artificial intelligence and machine learning will be key
to reducing costs and creating value for all parties.
“Silos between the ‘risk’ and ‘insurance’ buckets are
being removed. But the insurance industry still needs
to respond in a more connected way. The insurance
industry, risk professionals and government
need to collaborate and move forward
together.”
A ‘GENERATION-DEFINING CRISIS’
The invasion by Russia of Ukraine is another
example of how risk forecasts can underestimate the
scale of an impending crisis. This is according to Airmic
chief executive Julia Graham. “There is an urgent need
4 StrategicRISK AIRMIC 2022 EDITION > www.strategic-risk-global.com
for all of us to up our game in identifying and preparing
for emerging risks, and to think more deeply about
“THERE IS AN the kinds of systemic risks that will unfortunately be a
URGENT NEED TO feature of the world we live in today,” she said.
UP OUR GAME IN Graham says the risk association’s members are
IDENTIFYING AND exposed to a wide range of impacts emanating from
PREPARING FOR the Ukraine crisis. Speaking to StrategicRISK, she said
EMERGING RISKS, multiple industry sectors were feeling the effects,
AND TO THINK which range from sanctions and financial risks to
MORE DEEPLY supply chain disruption and energy supply issues.
ABOUT THE KINDS “Airmic is taking a joined-up approach in guiding
our members through this generation-defining
OF SYSTEMIC
crisis, as a reflection of the interconnected risks
RISKS THAT WILL this conflict has brought,” said Graham. “We are
UNFORTUNATELY maintaining a platform for risk professionals to share
BE A FEATURE OF their experiences and exchange ideas during a fast-
THE WORLD WE evolving crisis with far-reaching implications.”
LIVE IN TODAY.” Ukraine is a reminder of the unpredictable and
Chief executive, Airmic complex risk landscape we are operating in. “The
Julia Graham volatility in international relations we are seeing today is
a confluence of several explosive factors, which
was long in the making,” said Graham. “It has its
roots in the austerity faced in the aftermath of
the global financial crisis of 200 0 .”
FOR WHATEVER COMES NEXT
“Adding to this now, we have seen the rising impact
of social media, increasing geopolitical tensions, the
pandemic, and pressure on energy resources. The world
may get even more unpredictable and tumultuous from
here, and this is where risk professionals have a role to
play in stepping up to help their organisations navigate
and respond through it all.”
Graham says the onus is once
again on the risk management
community. “There is an imperative
for risk professionals to learn and
apply the lessons of the pandemic
and the Russia-Ukraine conflict,
boost preparedness, so as to
ensure the agility and adaptability
of their responses during a fast-
moving crisis. Skills associated with
scenario planning will be at the forefront.” SR
 VIEWPOINTS >
Set on the SEC climate rules?
Full disclosure. Publicly listed firms will be compelled to report on
third-party climate risks, as well as their own, explains supply chain
expert Atul Vashistha. Time to zone in on those blind spots.
A
s the world emerges from the global
pandemic, climate change is once
“MORE THAN again taking centre stage, with the US
50% OF LARGE Securities and Exchange Commission
BUSINESSES (SEC) proposing new rules to enhance
AND 25% OF and standardise climate disclosures.
THEIR SUPPLIERS Upon adoption, public companies will be required to
HAVE SEEN disclose climate-related risks that could impact the
COST SAVINGS organisation.
AS A RESULT OF With the increased attention from stakeholders
THEIR CARBON investors, boards, customers, partners and employees
along with these impending climate disclosure
MANAGEMENT
requirements, companies need the ability to access a
ACTIVITIES.”
current understanding of their risk exposure.
Founder, Supply Wisdom Keeping in mind that their biggest climate exposure
Atul Vashistha could be hidden in their supply chains, companies
need the ability to understand and report on their third
parties’ climate risks as well as their own.
BEYOND YOUR FOUR WALLS
The SEC’s proposed rule requires registrants to
include certain climate disclosures in their registration
statements and periodic reports. The requirements
are for climate-related risks that are likely to
materially impact business, results of operation, or
financial condition. They go beyond the organisation’s
four walls.
According to McKinsey, the average company’s
supply chain creates a greater environmental impact
than its own operations. In fact, the supply chain
accounts for more than 0 of greenhouse gas (GHG)
emissions and more than 0 of the impact on
geological resources. This is problematic, as the SEC’s
proposed rule would require disclosed GHG emissions
data (Scope 3) from upstream and downstream
activities in a company’s value chain.
While these disclosure requirements would apply
to public companies, private companies should also
expect to provide decision-useful information on
climate-related risks as their stakeholders will soon
demand it.
The issue here is that more than half of companies
lack end-to-end visibility in their supply chains. In fact,
of company executives do not feel their current
capabilities allow them to deliver the traceability
needed to remain resilient and sustainable.
The time to act is now to address these blind
www.strategic-risk-global.com < AIRMIC 2022 EDITION StrategicRISK
spots before the requirements go into effect, or
conversely the market uncovers unexpected
climate issues. Institutional investors who fail to
address climate change risks can expect to reduce
the value of their portfolios by as much as 10% in the
next 20 years.
24/7 RISK MONITORING
The only way to effectively mitigate ESG risks is
proactively, with continuous risk monitoring for 2
visibility. Businesses need an up-to-date risk picture
of their entire landscape, from suppliers next door to
Nth parties across the world. While it’s not efficient nor
effective to rely on humans for this visibility, teams can
leverage today’s automation, AI and machine learning
to do more with less.
It’s also important to expand the risk aperture.
Companies need to monitor a comprehensive,
international standards-based ESG risk framework that
goes beyond climate-related risks to include a broad
taxonomy of ESG risks such as equality, diversity and
inclusion, and location-specific ESG factors.
With the current US administration’s attention
to these matters, it won’t be long before disclosure
around other ESG-related risks are expected or even
mandatory.
Prioritising climate is not only good for the
world it’s good for business. Good ESG stewardship
means greater investment, talent attraction and
retention and greener supply chains mean more
profit. In fact, more than 0 of large businesses
and 2 of their suppliers have seen cost savings
as a result of their carbon management activities,
according to CDP.
The SEC’s proposed rules will hold businesses
and their supply chains accountable and provide
stakeholders with decision-useful information on
climate risks. There’s potential to be capitalised
on here and major risk to be avoided. The most
successful leaders will quickly upgrade their risk
management approach and be fully prepared
for climate and other ESG disclosures on the
near horizon. SR
Atul Vashistha is a leading expert on supply
chain risk and global business services. He is
founder and chair of Supply Wisdom.
5
VIEWPOINTS >

Scenario testing:
You can’t set it and forget it
Firms must increase the sophistication of their scenario planning over time,
says whyaye’s Stuart Birnie. And remember, no pain, no gain. Challenging
scenarios will build confidence that you can respond to anything.

C
ompanies and individuals have never ransomware attack. Over time, you may want to include
been more globally interconnected. secondary events such as customer data leakage or
The world is becoming riskier, more destruction. Move from desktop walk-through to more “IT HELPS TO
digitised and under more scrutiny than sophisticated testing (e.g., war games no notice tests). FORMULATE A
ever before. All these factors have meant If you have critical third parties involved in LIST OF ‘SEVERE
the nature and severity of risks that delivering key customer outcomes, then include them BUT PLAUSIBLE’
companies are facing is evolving rapidly, resulting in in your scenario testing. Ensure you have experienced SCENARIOS YOU
more operational incidents including cyber attacks, facilitators and all improvements captured are WISH TO TEST.
pandemics and geopolitical events. monitored. The CEO and senior leadership should be START SMALL
Scenario planning has a key role to play in allowing actively involved at every stage. AND INCREASE IN
you to operate effectively in this environment. Done We worked with a financial services firm that had SOPHISTICATION.”
correctly, it will allow you to identify risks to your previously undertaken basic desktop scenario tests,
Operational risk and
organisation, ensure your risk treatment is effective, but had found when incidents occurred, response resilience subject matter
and allow you to practice and refine your response and recovery activities weren’t coordinated and expert, whyaye
and recovery to a risk event. communications were disjointed. We set about Stuart Birnie
Scenario planning should involve all levels of the enhancing their scenario testing using these five steps.
organisation, including the C-suite. Benefits include
• Proactively identifying and mitigating risks to prevent
an operational incident occurring in the first place
• Practicing and continually improving your ability
1 DETERMINE THE SCENARIO
We consulted with business stakeholders
and determined a list of ‘severe but plausible’
to respond and recover from operational incidents scenarios we wished to test over a period of time.
in a timely and effective manner (because these These were designed to test the
events will happen) organisation’s ability to respond
• Ensuring you operate with integrity and comply and recover they weren’t
with relevant regulation scenarios we knew we could
• Being in control, so that when an incident occurs, be easily respond to.
you know you can respond appropriately. By
having this comfort, you can instil confidence in
colleagues, customers and regulators. 2 PLANNING
A lot of effort
went into this to
When implementing scenario testing, it is important ensure we got
to understand what outcomes you are trying to the required
deliver, and the people, technology, third parties, benefits.
data, processes and facilities that enable this delivery. Objectives
Essentially, what are the ‘crown jewels’ you are seeking and roles
to protect. were set
It helps to formulate a list of ‘severe but plausible’ and
scenarios you wish to test. What are the scenarios that
might impact your ability to deliver these key customer
outcomes? Start small and increase in sophistication.
So, you might start with a
small desktop exercise to walk
through your response to a

6 StrategicRISK AIRMIC 2022 EDITION > www.strategic-risk-global.com

agreed with senior management. We gathered data on
existing processes, as well as risk data and information
on known vulnerabilities. This allowed us to ensure
everyone was briefed in advance and we had a ‘run
book’ for the event.
5 TEST COMPLETION REPORT
Finally, we documented the identified
vulnerabilities (there were over 10) and the lessons
learned (there were six) and the report was circulated
and approved. The actions were then tracked through

3
EXECUTE THE TEST
During the test, we leveraged the run book to
ensure we robustly tested the process. We referred to
the data collected prior to the event such as process
maps, known vulnerabilities, recovery time objectives
impact tolerances to ensure they were all accurate and
to identify any unknown vulnerabilities.
existing risk management processes.
Ultimately the client executed a robust scenario
test and identified vulnerabilities to remediate.
Equally importantly, senior management and the
team increased their capability in executing response,
recovery and communication plans.
Scenario testing is a very powerful discipline that

4
IDENTIFY RESILIENCE
IMPROVEMENT OPTIONS
This was carried out over two sessions. The first
session we held within 2 hours to reflect on any
vulnerabilities identified. The second was held a few
days later to reflect on the process and the experience,
and to identify lessons learned for future tests.
gives you peace of mind that risks are being identified
and managed and you have robust response, recovery
and communications capabilities. As your approach
becomes more refined, organisations should look to
move to a continuous scenario testing approach. SR
Stuart Birnie is operational risk and resilience
subject matter expert at whyaye.

Ukraine triggers further crises

Sanctions designed to impact the Kremlin will certainly do damage,
says Validus Risk Management’s Phillip Pearce. But we live in a connected
global economy – so will crippling Russia end up crippling us?

A
s the Russian invasion of Ukraine
continues, many are speculating
about how it will impact the world
economy. The financial sanctions
and policy response so far have
been extraordinary, from Germany’s
decision to reverse its historic policy of never sending
weapons to a conflict zone, to the West banning
Russian banks from SWIFT, and the ban of most
transactions with the Russian Central bank.
We are witnessing a seismic shift in the world as we
know it. Many of these sanctions are designed to cripple
the Russian economy in the hope that it will spur protest
and force a change in the Kremlin’s approach.
INFLATIONARY PRESSURES
The sanctions will certainly damage the Russian
economy, but we live in a connected global economy
at a time when central banks are grappling with
elevated levels of inflation and on the precipice of an
aggressive hiking cycle.
Over the course of the last year, inflation has
continued to rise as energy commodity prices surged
due to supply chain issues caused by the pandemic.
Russia produces 10% of global oil and supplies 40%
of Europe’s gas. It is also the world’s largest producer
of grains and fertiliser key inputs in day-to-day items
from fuel to food.
It’s clear that inflationary pressures aren’t going
anywhere and that they could remain elevated for the
foreseeable future. Further stresses from the sanctions
against Russia are evident in money markets and the
short end of the interest rate curve, as the need for
dollar funding to cover asset liquidations and possible
defaults increases, and payments spike to levels last
seen in March 2020.
As the headlines continue to roll in and a new
“cold war” era emerges, risk management is going to
be vital to navigating the rough seas ahead to ensure
increasingly frequent outlier events don’t sink our
proverbial ships. SR
Phillip Pearce is associate, Global Capital
Markets, at Validus Risk Management.

www.strategic-risk-global.com < AIRMIC 2022 EDITION StrategicRISK 7

FOCUS > #CHANGINGRISK
The problem with quant
Your models are only as good as the data and scenarios
you plug in. And what Daniel Roberts has learnt from past
experience is that past experience can teach you a lot.
Sometimes you need to stop following the numbers and
start following your instincts.
M
any years ago, in a land far away…
it’s how so many good stories begin.
And from those stories, we are
supposed to learn lessons.
My experience has taught me that
quantification and modelling as a
means of predicting potential outcomes can be a useful
tool, or it can be horribly flawed. Models are only as
good as the data and assumptions that go into them.
How many of us, for instance, included the
possibility of a major geopolitical conflict in their
Monte Carlo simulations for 2022?
Effective quantitative risk management
relies heavily on the quality of the scenarios and
assumptions. And this is perhaps best illustrated by
a fairytale. So let us begin.
8 StrategicRISK 2022 AIRMIC EDITION > www.strategic-risk-global.com
ONCE UPON A TIME
Many years ago I was a mainframe systems capacity
planner. This meant building complex models of
mainframe systems based on performance data
collected by the customer. The data would provide
us with a picture of system utilisation at the CICS
[customer information control system] partition and
even at the major transaction level.
All subsystems would be measured, and we would
build the model to simulate the resource usage.
The compute intensiveness of each application
or subsystem would be simulated, and models run.
The result was cross-checked against the actual
system utilisation reports provided. Memory would be
modelled, along with disk and network utilisation.
We built a model that would emulate the client’s
 Normally, it would take two days to create and
calibrate the model, and then we would spend three
days running various scenarios. These could range from
• Implementing new applications or system
• Increasing the number of offices
• New users for an application or system
• The potential acquisition of a competitor or other
business (and integration onto existing platforms)
• Increased functionality in (and consequent load
from) an application or system
• Merging systems onto fewer but more powerful
platforms
Or combinations of the above. Usually, the
scenarios were connected to a business and strategic
plan. If the business plan said that there would be
ten new branches opened in the coming year – we
“MY EXPERIENCE would model the impact based on the average load of
HAS TAUGHT branches of the size of the new branches.
ME THAT A new application? How does that application
QUANTIFICATION compare to the existing application? Will it replace an
AND MODELLING application, thus freeing up capacity? For packages,
AS A MEANS what were the load requirements or estimates
OF PREDICTING provided by the vendor
This was years ago. Less than a decade ago, a
POTENTIAL
systems architect told me that the answer to all
OUTCOMES CAN BE
capacity problems is “ ust spool up another server.”
A USEFUL TOOL, OR That option was not available.
IT CAN BE HORRIBLY The role of modelling was to develop a quant-
FLAWED.” based assessment of potential futures so that strategic
Founder, GRMSi and operational planning could progress smoothly.
Daniel Roberts Everything depended on the quality of the assumptions
being made, and the realistic – or otherwise – nature of
the scenarios or combinations of scenarios that were
being assessed.

A SPANNER IN THE WORKS

mainframe environment down to the second decimal
place of utilisation by element.
From that model, once it was agreed that it actually
did represent the customer’s system, we would apply
a number of scenarios to determine when the system
would reach capacity, so that any upgrades could be
budgeted for early enough, and pre-orders placed.
This was in the days when lead-times for major
system components (main memory, disk and even
C U upgrade) could take three to six months for
delivery. Six months of slow system response in an ATM
network, for example, could result in customer queues
and ultimately a loss of customers to rival banks.
And the upgrade components were not cheap.
A major systems upgrade could be a board-level
procurement request.
For one client, a large insurance company, we
scheduled the capacity-planning exercise some
months in advance. We ensured the client gathered
the appropriate systems performance data to feed
into our initial model. Multiple trial runs were made to
prepare and we were ready for the week.
On the first day, we were able to calibrate the model
to represent the client’s mainframe environment to
within a percentage point for all major applications
and subsystems. And we were ready to calibrate major
transactions and specific activities.
The second day was consumed by gaining exact
calibrations of all applications and subsystems, and
most key transactions (the system heavy activities
identified from the performance data) to one decimal
plan of accuracy.
By the middle of the third day, we had everything
modelled to within two decimal places, and could
replicate the results with multiple runs of the model.
Now we were ready to start running the scenarios.
“Let’s see your main scenarios. We’ll start with a simple
one,” I suggested.
To which the client responded “Oh, I don’t have
any right now. I’ll come up with some tonight, and we
can run them tomorrow.” rofessionalism stopped me
from blurting out something inappropriate.

www.strategic-risk-global.com < 2020 AIRMIC EDITION StrategicRISK 9

FOCUS > #CHANGINGRISK

Assumptions should be tested where possible. The quantified, it is worth first considering if quantification
client should have confirmed their strategic plan and of that particular risk will have any real meaning,
operational requirements, their development plans “QUALIFICATION beyond a simplistic “high, medium, low”.
and priorities for the coming year. All these should OF RISKS, IN There is a place for quantitative modelling of
have been known well before we began. ASSESSMENT, complex systems, high-volume activities and potential
PROBABILITY portfolio performance. Usually. However, there are
IT’S ALL IN THE ASSUMPTIONS CONSIDERATIONS many situations in which the greatest forecasting
Let us apply this cautionary tale to any Monte Carlo AND MITIGATION value comes not from models, but from the combined
simulation (or other modelling methodology) exercise. STRATEGIES, CAN knowledge and experience of individuals.
The number of iterations that the model runs is DELIVER BETTER ualification of risks, in assessment, probability
irrelevant if the input assumptions have not been considerations and mitigation strategies, can deliver
RESULTS THAN
carefully considered and validated. better results than ’following the numbers’.
’FOLLOWING THE
When modelling climate, if the starting assumptions I have also learned that if you control the
do not include actual CO2 emissions, for instance, then NUMBERS’.” assumptions, you can determine the results, regardless
the results may vary widely from predictions. Founder, GRMSi of the quantification tools and processes used.
Likewise, if assumptions about the carrying Daniel Roberts Where quantification is desired, don’t forget to
capacity of the Amazon basin or the Siberian tundra spend time and energy on the development and
are wrong, the modelled results will be wrong. analysis of your assumptions. SR
This is not to suggest that climate change is not
real and the impact will not be extreme at current Daniel Roberts is risk advisor and founder of
trajectories. But it does suggest that assumptions used GRMSi (Governance and Risk Management
need to be well-tested and continuously reassessed. Services).
And climate scientists are doing exactly that testing
and confirming their input assumptions. They are
certainly not going home and coming up with some
scenarios overnight.
There are massive models, utilising many millions
of times the computing power that I was using to
model mainframes. And these supercomputers
are looking at and analysing huge quantities of
information and data.
Insurance providers are able to provide quotes
based on millions of (claims) events. et assumptions
about future drivers of claims may be wrong.
Still, with millions of events used to calibrate
models of future claims probabilities, in most cases
unexpected future contributors to claims should not
be so different as to completely invalidate the pricing
models currently being used. However, the profitability
of the overall insurance book might be impacted.
Historical loss experience does not always help
us determine the future. During the height of the
pandemic, personal behaviours changed dramatically,
for instance, resulting in a direct impact on the validity
of pre-pandemic modelling.

MODELS ARE JUST MODELS

Coming back to the original point. uantification
of low-number events or situations borders on the
meaningless. When the assumptions and scenarios
are not well thought through, then a million-plus
interactions and events simulation will not give future
projections that can provide any real confidence.
In the case of most risks, the quality of
“quantification” comes from the quality of internal
networks and the ability to consider the range of
potential impacts that could lead to the realisation of
the risk, or achievement of the benefits.
It also relies on the openness of individuals to
discuss potential bottlenecks, and a culture that seeks
clarification over attribution of blame.
Therefore, when deciding whether a risk can be
FOCUS > RESILIENCE
Ride out
the storm
The phrase ‘perfect storm’ was made
for times like these, as relentless crises
hit businesses still reeling from recent
shocks. Better strap in and focus on your
resilience, because the forecast shows
conditions are not getting any calmer.
A
s an unprecedented array of
hostile events rains down on the
global economy, businesses should
respond by making themselves as
resilient as possible, probably for
the next two or three years at least.
That’s the collective conclusion of risk experts,
as a broad range of threats coming from all
directions will impact nearly every aspect of
business including treasury and finance, logistics
and supply chains, human resources, customers
and reputation.
As Russia continues its bombardment of Ukraine,
and governments have responded with tough
sanctions, prompting commodity shortages, interest
rates and inflation are on the rise for the first time in
years and there are warnings of the ever-present threat
of a spill over into cyber attacks.
“There is an imperative for risk professionals
to learn and apply the lessons of the pandemic
and the Ukraine crisis, boost
preparedness, so as to ensure the
agility and adaptability of their
8.5%
responses during a fast-moving
crisis. Skills associated with
scenario planning will be at
the forefront,” says Airmic chief The US’s price index
executive Julia Graham. leap from March 2021
to March 2022
NOWHERE TO HIDE
Many businesses are facing the
perfect storm of high risk and low
resilience as geopolitics moves rapidly up the agenda.
According to research by Beazley, these risks will peak
in summer 2022.
Adrian Cox, CEO at Beazley, says: “Business
leaders continue to face perhaps the stiffest test in
a generation as the world reels from the economic
whirlwind unleashed by COVID-19 to the unfolding
horror and ensuing geopolitical dislocation caused by
the Russian invasion of Ukraine.”
“Business resilience is under real threat as
companies adjust to a new world order in which
everything, from trading relationships, through
commodity prices to supply chains, needs to be
re-evaluated from the ground up.”
Among the high-risk/low-resilience threats business
leaders are most concerned about are the economy,
political risk, inflation, environmental damage and
supply chain risk. The supply chain crisis rumbles
on, with recent lockdowns in Shanghai delivering a
$28 billion hit to global trade, according to analysis by
Russell Group.
Rachael Johnson, head of risk management and
corporate governance at ACCA, says: “Over the past
few weeks, we have seen once again how the velocity
and context of risk can change dramatically within a
matter of days, if not hours, and how companies are
affected no matter where they are based or what line
of business they are in.”
“Recent crises have forced organisations to rethink
how they keep up with the speed of risk, and they
FOCUS > RESILIENCE
can only do that if they get their risk management
framework – the principles, processes and practices –
better aligned.”
ENERGY SHOCK AND INFLATION
Inflation could be heading for double figures in several
countries after years of low single numbers. Currently,
most advanced economies face year-on-year inflation
above 5%. As McKinsey points out: “The consumer
price index jumped by 8.5% from March 2021 to March
2022 in the United States for a 0-year record, by .
in the eurozone, and by in the United Kingdom.”
And for the first time since the early 1 0s, there’s
an energy crisis, with some energy-intensive industries
facing a nearly 50% jump in production costs,
according to calculations by the IMF. “European energy
markets are experiencing an unprecedented shock,”
says Enverus Intelligence Research, citing a five-fold
increase in short-term gas prices over their 2021
average as quoted on the largest European exchange.
“[It] comes from a confluence of long-term trends
and current trends, including shifts in sentiment
among customers and investors, carbon pricing, the
post-COVID-19 surge in global demand and, most
recently, conflict in Ukraine.”
And that’s just gas. In its latest Commodity Markets
Outlook in April, the World Bank notes that the price
of Brent crude oil is projected to average $100 a barrel
in 2022, a 42% increase from 2021 and the highest
level since 2013. The energy crisis is “a material risk”,
it warns, given that prices could rise far more than
forecast, “especially if EU sanctions on Russian energy
are broadened”.
Here are some sobering numbers for the resilience-
conscious among us.
In March 2022, energy prices had shot up by more
than four times over those of April 2020, for the biggest
23-month increase since the last energy shock in 1 3.
Simultaneously, the price of fertilisers and food
rose to the highest level since 2008. Metals and
minerals jumped by 24% in just one year.
Wheat prices are forecast to jump 40%. The
Ukraine-Russia region is responsible for nearly
one-third of global wheat exports and 65% of
sunflower. Egypt, Turkey and countries in
400%
East Africa are expected to be particularly
vulnerable to a burgeoning food crisis
over the coming months.
Inevitably, in a highly
Energy prices have
interconnected world, these issues will quadrupled since
have further knock-on consequences.
One of the causes of the Arab Spring,
for instance, was a rise in the cost of food.
Even if the conflict were to stop tomorrow,
most forecasters expect commodity prices to stay
high for the next two years at least.
RESILIENCE NEEDS DIVERSIFICATION?
Supply chains are the front line as the vital linkage
between producer and consumer. “The Ukraine crisis
has put supply chains back in focus,” says Jim Lane,
an authority on bio-economies. “Whether it’s fuels
12 StrategicRISK 2022 AIRMIC EDITION > www.strategic-risk-global.com
or materials or anything else, [we need] resilient
economies that favour a portfolio of manufacturing
and supply options.”
“Governments should pursue a strategy that
results in more stable prices and production of
100
domestic energy. Opting to maximise rather
than minimise national dependency on
$ existing fossil resources results in high
The cost of a barrel of prices that provide a stream of wealth for
Brent crude oil in nations like Russia.”
2022, up 42% from The IMF agrees. “More diversification,
2021. Source: not less, improves resilience,” the
World Bank
organisation argues in its latest World
Economic Outlook, in a general refutation
of the pandemic-triggered demands for the
dismantling – or at least shortening – of global value
chains. It argues that ‘reshoring’ is misguided, with
research suggesting countries and sectors have
substantial room to diversify away from domestic
sources in favour of international suppliers.
“RESILIENCE IS “Supply chain issues are only discovered during
UNDER THREAT times of crisis – and this latest disruptive episode
AS COMPANIES following Brexit and COVID-1 has been no different,”
ADJUST TO A explains Andrew Newton, food consultant at
NEW WORLD Columbus UK, a specialist in digital business solutions.
ORDER IN WHICH “As world economies reopen, demand for energy,
EVERYTHING labour and transport has skyrocketed. Industries
FROM TRADING from retail to food and beverage have all seen varying
degrees of severity. If left unaddressed, inefficient
RELATIONSHIPS,
supply chains can become a crippling economic
THROUGH
burden and jeopardise a company’s future.”
COMMODITY
PRICES TO SUPPLY READY FOR 70S-STYLE STAGFLATION?
CHAINS, NEEDS TO In terms of inflation, how should businesses
BE RE-EVALUATED.” protect themselves? In its latest sigma report,
CEO, Beazley Swiss Re Institute forecasts a stagflation-like economic
Adrian Cox environment for 2022 and 2023, characterised
by higher inflation and lower real GD growth.
Unlike the structural stagflation of the 1 0s, this
stagflation will be cyclical, with the slowdown in
economic growth leading to lower but still very high
inflation in 2023.
According to McKinsey, chief executives need to
take charge and manage it down, for instance by
asking themselves how the business “can design
products, services and experiences to deliver value”.
That would involve the stabilising of supply chains
that may be broken, control of costs, staff
compensation and repricing among other tasks.
Ultimately, it’s about crisis management, says
April 2020 Sally Llewellyn, regional security director EMEA for
International SOS, the global workplace, security
and medical consultancy. “While in the past, crisis
management teams were often activated for fairly short-
term crises, COVID-19 completely changed that because
of the constantly changing nature of the pandemic,
government interventions and other restrictions.”
“In addition to COVID, other geopolitical issues
such as military conflict, coups, terrorism and other
upheavals have also caused crisis management teams
to be activated. Many are juggling multiple issues at
the same time.”
 As pressure grows on these teams, they need to
be protected from burn-out. Llewellyn suggests a
four-point plan. Back-up talent should be identified
to ease the burden and improve responses to future
crises. ersonnel should be rotated. External experts
should be brought in to share the pressure on teams
and provide third-party advice and governance. And
technology such as Zoom should be deployed for
quick decisions.
THE S IN ESG
erhaps the first point of call for chief executives is
their people. Good staff are the backbone of a crisis-
proof business, says Sara Cohen, chief people officer
at Forsta. “A business is only as good as its people,
especially in the technology industry. The longer people
work with one employer, the better they know their
colleagues and customers, and the company’s systems
and products. And the longer that teams work together,
the better their ability to cooperate effectively.”
“More than ever, employees want transparency,”
she says. “They want to know what’s going on, how it
impacts them, and whether it is socially responsible.
Over the past year, I’ve noticed that people aren’t
afraid to ask questions and demand information.
Managers must be prepared to explain how they come
Tokio Marine HCC is a trading name of HCC International Insurance Company plc (HCCII) and Tokio Marine Europe S.A. (TME), both members of the Tokio Marine HCC Group of Companies. HCCI
is authorised by the UK Prudential Regulation Authority and regulated by the UK Financial Conduct Authority and Prudential Regulation Authority (No. 202655). Registered with Companies House
of England and Wales No. 01575839. Registered office at 1 Aldgate, London EC3N 1 RE, UK. TME is authorised by the Luxembourg Minister of Finance and regulated by the Commissariat aux
Assurances (CAA). Registered with the Registre de commerce et des sociétés, Luxembourg No. B221975. Registered office: 26, Avenue de la Liberté, L-1930, Luxembourg.
to a decision and why they are taking a certain action.”
This is certainly the case as the Great Resignation
- or ‘Big Quit’ – gathers pace. “Employees are not
“GONE ARE THE
just making decisions on salary and benefits,” notes DAYS WHEN A
McKinsey. “They are looking for a company that is BOARD REVIEWED
willing to do the right thing. That’s become a much ITS PRINCIPAL
bigger trend in the past couple of years.” RISKS ON AN
So perhaps a perfect storm presents opportunities ANNUAL BASIS.
as well as difficulties. Organisations that are poised MANAGING RISK
to respond to the challenges that lie ahead, to treat TODAY MUST BE
their responsibilities under ESG as more than just a A DYNAMIC AND
tick-box, and to prioritise longer-term resilience will CONTINUOUS
inevitably be best-positioned to ride out the storm
PROCESS – AND
clouds that lie ahead.
But a robust approach must be continuously
ON EVERY BOARD
re-evaluated, believes Airmic’s Graham. MEETING AGENDA.”
“Gone are the days when a board reviewed its CEO, Airmic
principal risks on an annual basis,” she says. “Managing Julia Graham
risk today must be a dynamic and continuous process
– and on every board meeting agenda. It cannot be
written up as part of an annual report then put away
for the rest of the year.”
“Even in a great report, there’s often still too much
focus on the short term and the downside of risk, to
the exclusion of thinking longer term and about the
opportunities risk, well-managed, can offer.” SR
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PROFILE >

You’ll never walk alone

As he takes up the Airmic chairmanship, Tim Graham explains why
there’s no room for lone wolves in risk and how his decision to ‘jump
ship’ into risk management was the best of his career.

T
im Graham has had a long and illustrious
career, initially as a chartered and
financial accountant before making
the leap into the world of risk. With risk
management roles at major household
names, including Sainsbury’s, BAA and
currently pharmaceutical giant GSK, he became
Airmic deputy chair last year and is due to take up the
helm as chair when Claire Combes steps down at the
Airmic AGM on Monday 6 June.
“I am tremendously excited to be picking up
the reins as chair of Airmic,” he says. “I am also
humbled when I look at the some of the individuals
that have held the position before me. I feel very
proud and fortunate to be part of the Airmic team,
who constantly show so much enthusiasm and

14 StrategicRISK AIRMIC 2022 EDITION > www.strategic-risk-global.com

 commitment to our members and partners.”
“I joined Airmic over 20 years ago when I found an
organisation with the same passion and enthusiasm
for risk management that I held then, and still do
today,” he adds. “I am keen now to continue building
Airmic’s reputation as an organisation that stimulates
thought leadership and organisational learning in risk
management.”
“Reflecting on the challenges we have all experienced
over the past few years, I also want to encourage a
culture for today’s risk managers to become more agile,
strategic and vocal in their thinking when managing risk.”
NEVER STOP LEARNING
Graham feels very fortunate with the path that his
career has taken and says that moving into risk
management was the best decision he has made in
his work life to date. “I initially qualified as a chartered
accountant, which has always been a great anchor
throughout my career and for the various positions I
have held in commerce and industry.”
“I decided to jump ship’ from mainstream finance
to the world of risk management and insurance early
on in my career at a time when the importance and
value that risk management brings to business was
gaining increased recognition.”
When he was sponsored by Sainsbury’s to enrol
in an MBA programme, it was a second important
professional turning point. “I have always been an
advocate for lifetime learning’,” explains Graham. “I
have been involved in some significant and engaging
corporate change programmes during my career
and had the opportunity to support some global
charitable projects along the way, which I have found
to be personally rewarding, too.”
The MBA opened his eyes to a more holistic view of
business and the value of aligning risk management
with wider business strategy. He has held onto this
belief, and thinks it is more relevant than ever as risk
“THE WORLD professionals help guide their organisation’s decision-
HAS ENTERED A makers through such a tumultuous period.
PERIOD OF INTENSE “The last two and a half years have seen
TURBULENCE… unprecedented challenges and change for businesses
CLIMATE CHANGE, and risk managers alike,” says Graham. “The recent
DISEASE, geopolitical, environmental, economic and pandemic
POPULATION events require risk managers to think and act
MIGRATION, differently. Enabling businesses to effectively respond
to these events can only strengthen and elevate
TECHNOLOGICAL
the importance and value of risk manager roles to
AND ECONOMIC corporate boards and financial markets.”
DISRUPTIONS, The profession has evolved considerably as a result
AND THE WAR of the experience of the pandemic and other recent
IN UKRAINE ARE shocks, he thinks. Like Airmic chief executive ulia
ALL ‘ONCE IN A Graham (no relation), he thinks one of the important
GENERATION’ lessons is the need for more future gazing as we try
EVENTS.” to better anticipate what may come down the line.
While not all major shocks can be anticipated, scenario
Incoming chair, Airmic
Tim Graham planning should ensure businesses are better prepared
to respond to the next curveball.
“While traditional risk frameworks and registers
will continue to remain important, recent events have
shown that the focal point of our risk management
www.strategic-risk-global.com < AIRMIC 2022 EDITION StrategicRISK
lens’ needs to extend much further ahead to capture
these emerging and global frontier risks’. These
events have also highlighted the importance of
data and analytics to better model risk, the value of
more robust business continuity planning and crisis
management.”
MOVING FORWARD TOGETHER
Collaboration is critical moving forward. One of the
best pieces of advice Graham was given during his
career was that, “A lone wolf cannot manage risk”.
“Everyone has an important role to play,” he explains.
“This is best achieved by building strong networks and
trust with key stakeholders and a culture of continuous
open communication and engagement.”
This is one reason why he believes the face-to-face
nature of this year’s Airmic conference in Liverpool is
so important, building on the success of last year’s
October conference in Brighton.
“The event will present a great opportunity to
share and reflect on collective experiences of the past
year and, most importantly, for everyone to leverage
the unique annual event that the Airmic conference
brings, to connect and move forward together’, the
key theme of this year’s conference.”
“The world has entered a period of intense
turbulence and uncertainty. Climate change, disease,
population migration, technological and economic
disruptions, and the war in Ukraine are all ‘once in
a generation’ events, each of which has radically
changed the global risk landscape.”
“Airmic 2022 in Liverpool provides a unique
opportunity to connect, consider strategic
questions and develop ideas for the challenges
and opportunities we face with our peers, partners,
exhibitors and experts to consider how we can move
forward together’ to manage these risks,” he continues.
“I am sure, as it always does, that the conference will
provide the opportunity to have some fun, too.”
CAUTIOUSLY OPTIMISTIC
So is it time to build bridges with the insurance
industry and learn some of the lessons after three
years of harsh market’ conditions Graham believes
it is time to leverage the trust built between the
corporate and insurance world to develop new risk
management and risk transfer solutions.
“ remium rates, and the scope of cover and
capacity, have continued to be a challenge for all,” he
acknowledges. “Nevertheless, the latest Airmic survey
of members suggests signs of green shoots’ where
the pace of the hardening is slowing, in line with other
surveys on the market.”
“We are not out of the woods yet, and premium
rates for cyber especially continue at challenging
levels. We advise policyholders to check the terms of
their cyber renewals and the controls demanded by
insurers as these can be subject to material change
and could catch policyholders off-guard.” SR
The comments in this article are those of Tim Graham
and not of GSK.
15
FOCUS > ASIA

Fear factor
Exceptionally varied and diverse, Asia as a region defies
most generalisation. But when it comes to risk, the same three
fears dominate – cyber attack, economic slowdown and BI. All while
organisations try to pinpoint what ‘sustainability’ really means for them.

A
sia has faced significant challenges over
the past couple of years. At the initial
epicentre of the COVID-19 pandemic,
Asian organisations continue to grapple
with the virus more than two years
on, while dealing with a host of other
unique risk factors across the continent.
Aon’s 2021 Global Risk Management Survey provided
a snapshot of the biggest risk factors in Asia over the
past 12 months. The broking and advisory group’s
survey found that business interruption, an economic
slowdown, and the ever-present threat of cyber attacks
were the top three risks for risk professionals.
Aon’s survey also noted pandemic risks, health
crises, changing market factors and increasing
competition as prominent issues. Commodity price
risk, scarcity of materials, reputational and brand
damage, cashflow risk and supply chain failure were
also cited as major causes for concern.
“EVERYBODY TALKS For directors and officers, a separate study by
ABOUT HAVING Willis Towers Watson and Clyde & Co found that
THIS CAPABILITY cyber attacks and data loss were the top two concerns
TO LET PEOPLE for the second year running. Cyber extortion ranked
WORK REMOTELY… as the third greatest risk, followed by regulatory risk,
WHAT WE HAVEN’T including threat of fines, penalties and risk of health
PERHAPS SEEN IS and safety environmental prosecutions.
THE DOWNSIDES CO 2 , combined with increasing governmental
and regulatory measures, has driven up concerns
OF THESE SYSTEMS
around climate change risk in some regions. While it
THAT COULDN’T
still doesn’t appear in the top 5 for any region, it is the
COPE.” number six risk in the UK, Asia and Australasia.
General secretary, Parima Entering the second quarter of 2022, a number of
Steve Tunstall these factors remain significant challenges for Asian
risk professionals. Issues like a supply chain slowdown,

16 StrategicRISK 2022 AIRMIC EDITION > www.strategic-risk-global.com

 amid a ESG RISES UP THE AGENDA
worsening According to Tunstall, who is based in Singapore, the
COVID issue of sustainability, and transitioning to carbon net
situation zero, is also a priority for Asian risk managers. While he
in China, and was “pleased sustainability is getting onto boardroom
subsequent problems agendas”, he says “there’s still a real mix of definitions,
across supply chains interpretation and understanding”.
and manufacturing “Some organisations are laser focused on climate
facilities, loom larger in change, others are still talking in terms of ESG. So
2022 than in 2021. we’re seeing quite a mixture in how this has been
In a bid to untangle interpreted by the community. I think it’s a matter of time
supply chain issues, nations until we end up with global standards that people can
including Singapore and New ealand have begun shoot for. The key thing for me is that it has people’s
to strike deals to ease the path for exporters. Asian attention. It only had the attention of 5% of companies
corporates with close ties to China are expected to five years ago. Now it’s on the agenda for every
struggle on as several cities in China, including the company. The question is whether they have the tools,
powerhouse of Shanghai, deal with strict lockdowns. knowledge and ability to do anything about it.”
“Fundamentally there’s a need for education,” he
CYBER: APAC IS MOST ATTACKED REGION adds. “There’s been a lack of consistency from political
ASIA: According to IBM’s X-Force Threat intelligence team, leaders as to how changes will be implemented.”
TOP RISKS APAC was the most attacked region by cybercriminals in
2021, accounting for one in four attacks globally. Japan,
Kelvin Wu, corporate risk manager for International
SOS, also cites sustainability as a major risk factor
Australia and India received the most attacks, ranging for the year ahead. “We are seeing ESG, and in particular
1 CYBER ATTACKS from server access hacks to remote access Trojans and sustainability, as a topic very much at the forefront
data theft. across the region. Given the broad definition of
2 BUSINESS arima has cyber firmly at the top of its greatest sustainability and the initial focus of it around
INTERRUPTION risks. A member survey, conducted last year and energy, the challenges for risk managers are around
released this year, saw cyber come out on top in every trying to figure out more specifically what ESG and
3 ECONOMIC member country apart from Japan and China, both of sustainability mean for the organisations they represent.”
SLOWDOWN/ which selected natural catastrophes. According to Singapore-based Wu, governance issues
SLOW Risk experts do not expect the cyber threat to have also arisen around sustainability. “We are starting
RECOVERY dissipate any time soon. As more organisations to explore with partners and members the governance
transition to working from home, responsibilities and risks for board members and
4 COMMODITY introducing directors when it comes to sustainability in the region,
PRICE RISK/ flexible which again is a fairly new concept,” he says.
SCARCITY OF working With sustainability poised to become one of the key
MATERIALS issues facing corporate risk managers in Asia, Tunstall
arrangements, companies believes executives need to closely monitor their
5 DAMAGE TO will become more operations for sustainability risks. “The biggest thing is
REPUTATION/ vulnerable to cyber just collecting and managing all of those stakeholders,
BRAND attacks. Hackers are on the watching where the potential gaps are going to open
look-out for weak defences up, and making sure the wheels don’t fall off.”
6 REGULATORY/ and are ready to exploit them. Tunstall says corporates risk overlooking aspects
LEGISLATIVE arima general secretary Steve Tunstall says cyber of sustainability compliance due to the size of the
CHANGES remains “one of the main two risks in Asia”, “whether topic. “One of the biggest risks is that the baby goes
it’s cyber health or cyber innovation”. out with the bath water. We’ve all seen examples of big
7 PANDEMIC “Obviously, most organisations’ technology corporations who focus in one area and take their eye
RISK/HEALTH resources have been pushed close to breaking point off the ball somewhere else. Then you end up with a
CRISES due to COVID. Everybody talks about having this massive compliance breach.”
capability to let people work remotely, and we have
8 SUPPLY now seen it delivered in most organisations. What NAT CATS AND GEOPOLITICS
CHAIN OR we haven’t perhaps seen is the downsides of these With cyber and sustainability dominating the minds
DISTRIBUTION systems that couldn’t cope, and the resulting data loss of corporate risk managers across Asia, consistent
FAILURE and breaches. How that plays out in the long term is threats, such as weather, also remain top risk factors
anybody’s guess.” in 2022. The regional insurance sector continues to
9 INCREASING A fragmented regulatory landscape around cyber evolve, with parametric insurance used widely in the
COMPETITION and data protection could mean we don’t see the true recent Typhoon Rai catastrophe in December 2021.
impact of WFH data breaches for a while yet. Alongside natural catastrophes, companies
10 FAILURE TO “In Asia, there is now a fairly robust regulatory continue to worry about supply chain and security
INNOVATE/ framework in most jurisdictions around declaring issues, and the risk of contagion from Russia’s war
MEET cyber breaches,” Tunstall says. “But I think the actual on Ukraine. “The situation in Ukraine is raising the
CUSTOMER implementation and enforcement of that is still patchy spectre of political/security concerns,” Wu says.
NEEDS in many places. I suspect there are issues under the “Though for Asia, this is probably filtered through the
surface, or issues that haven’t been identified yet.” lens of knock-on supply chain impact for now.” SR

www.strategic-risk-global.com < 2022 AIRMIC EDITION StrategicRISK 17

FUTURE OF BUSINESS >

Flood through a new lens

Floods dominated natural perils in 2022,
triggering multiple interconnected risks. Can
space radars give us the insight needed to
handle claims quickly and accurately?
claims handling process, ensuring those affected
receive prompt pay-outs allowing them to get back on
their feet as quickly as possible.
“Liquidity management after catastrophic events
is essential because, for instance, your utilities may go
down, you may be faced with clean-up costs or have
to rent a new building,” notes Marco Adamo, structurer
at Innovative Risk Solutions, EMEA, Swiss Re Corporate
Solutions. “On average, parametric solutions pay out

L
osses from flood continued on the upward
trend globally in 2021, with Swiss Re sigma
records showing that flood is the most
frequently occurring natural peril. In the
past decade, there were three times as
major flood events as tropical cyclones.
Major floods in Germany and China were among
the events that drove total economic catastrophe
losses of 2 0 billion for the year. The uly floods in
Europe were the costliest natural disaster on record for
the region, causing over 0 billion of economic losses
within 1 to 30 days following a notification, so that
liquidity immediately arrives when it is needed.”
With parametrics, pay-outs also do not have to rely
on physical damage as a trigger. Through its FLOW
solution, for instance, Corporate Solutions was able
to structure a business interruption solution based
around the readings of river gauges in Central Europe.
The product pays out when water levels go too low
or high for barges and other vessels to safely access the
waterways upon which they trade. When this happens,
the insured receives a pay-out for the disruption or
extra expenses that are likely to be sustained.

40bn
(around 13 billion of which were insured). It is not just about risk transfer. Access
Given the scale of the devastation last year and to more granular hazard information
more recently along Australia’s east coast, there is an
argument that flood risk should no longer be considered
$ has an essential risk mitigation role,
particularly as climate change continues
Economic loss from
as a secondary peril. This is because the risks and the July 2021 floods to influence weather extremes.
impacts of secondary perils are not as well monitored or across Europe “It’s important for the risk manager not
modelled as peak perils, such as windstorm.
In a highly interconnected world, the impact of a
major flood can be felt both directly and indirectly. “If
an entire geographic area is inaccessible, this causes
a lot of additional costs,” says an Bachmann, head
of Innovative Risk Solutions at Swiss Re Corporate
Solutions. “So it’s not just about the physical damage but
also the supply chain and business interruption aspects.”

NEXT-LEVEL FLOOD MONITORING DATA

Insurers can help address the critical vulnerability
presented by flood risk by increasing the focus on
secondary perils and developing tailored solutions
designed to shield business and society. With floods
affecting nearly a third of the global population, and
a sizeable protection gap, there is an urgent need to
make use of emerging technology and data.
Corporate Solutions is collaborating with satellite
company ICE E, which uses space radar technology
to offer near real-time flood observations. Insights can
show how events unfold with an accuracy not previously
been possible for a highly dynamic peril such as flood.
This opens up the possibility for parametric covers
based on flooded areas or critical sites impacted, for
instance, as well as providing insights that can be
used by corporate risk managers to improve the flood
resilience. Access to detailed loss data in the immediate
aftermath of a flood can significantly improve the

only to consider their current exposure, but also the
exposure they might have in 30 years’ time and to think
about how the frequency and severity of events is
actually increasing,” says Adamo.
“ hysical climate risk assessment enables
companies to understand the effects of climate
change on their physical portfolios now, as well as
in the near, mid or long term. Swiss Re’s Climate Risk
Solutions considers the exposure, not only to flood,
but other natural hazards over time as well.”
A changing casualty market
Casualty markets are hotting up, thanks to two global trends. One is
economic inflation, which is increasing insurance prices across all sectors.
The other is social inflation. Time to adapt and enhance our offering.
T
he casualty insurance market is
complicated. Businesses are seeing
significant changes to their operations and
supply chains driven by the pandemic,
political unrest and economic instability.
Insurers are facing challenges underwriting
changing businesses, high inflation and reacting to an
increasing litigious and socially aware world.
Against this backdrop, Swiss Re Corporate Solutions
is investing in expanding its existing UK market
presence. The insurer sees an opportunity to bring a
differentiated proposition, under-pinned by award-
winning technology, high-quality talent, proprietary
trendspotting and market-leading risk management.
ennifer Wingate-Whyte, head of Casualty & Fin ro
UK at Swiss Re Corporate Solutions said “The world has
become more aware of its impact on society and that
is why casualty insurance is needed. It allows us to help
our customers manage the interactions they have with
their employees and clients and that’s why it matters.”
In response to growing demand from brokers and
risk managers, Corporate Solutions is enhancing its
Casualty offering, starting with significant investment in
the UK. The strategy is designed to take the company’s
international programme business to the next level,
building on the robust foundation achieved in their
roperty line of business.
Wingate-Whyte explains “Through a combination of
the platform that we offer under international programs,
our claims and risk engineering advice and the services
we offer, we believe there is a space for us in the middle
market for casualty, and our customers and brokers are
excited about us being able to deliver. We don’t want to
be the biggest, but rather the best at service delivery in
an area where our clients have limited choice.”
In partnership with
“The attention should go far beyond an organisation’s
individual premises to consider egress or ingress
problems, perhaps there is a bridge nearby, and or
bottlenecks from critical suppliers or critical customers.
All this data needs to be captured and analysed, so you
can make sense of the insights on offer.” SR
Jan Bachmann is head of Innovative Risk Solutions and
Marco Adamo is structurer at Innovative Risk Solutions,
EMEA, at Swiss Re Corporate Solutions.
A key pillar of the investment strategy was to grow
the team of underwriters. “We have done our research
and made sure that we’ve approached talent that is
very aligned to our strategy. Our expanded team is now
in place and ready to work to shape the business and
make sure we’re proactively meeting customer needs.”
The fact that the cost of damages is increasing in
many regions poses another challenge. Corporate
Solutions is particularly keen to help customers manage
their exposures through risk engineering. This includes
examining how clients are dealing with workplace issues
around health and safety, and how its claims service can “WHETHER IT’S
help manage cost settlements claims inflation. CHANGES IN
“We want to work with customers who believe in a LEGISLATION ON
culture of risk management, who want to improve their ACCESS TO JUSTICE
own risk, and who need the benefit of our international OR ESG CONCERNS,
program platform. It’s not about just being a commodity WE KEEP AN EYE ON
purchase, it’s a true risk partnership arrangement.” FUTURE TRENDS
Top priorities include providing real-time transparency AND WE’LL MAKE
via Corporate Solutions proprietary international SURE THAT WE GIVE
program system, ulse, ensuring that all programmes
CLIENTS ACCESS TO
are compliant and issued on time. The insurer wants to
THE SAME LEVEL
work with businesses that are keen to understand their
exposures and find ways to mitigate them. OF DETAIL THAT
Wingate-Whyte concludes “Whether it’s changes in WE’RE SEEING.”
legislation such as access to justice or ESG concerns, Head of Casualty &
we scrutinise future trends and we’ll make sure that FinPro UK, Swiss Re
we give clients access to the same level of detail that Corporate Solutions
Jennifer Wingate-Whyte
we’re seeing. In combination with an experienced and
talented team at Corporate Solutions in the UK, we are
excited to discuss our plans for casualty with customers
and brokers at Airmic.” SR
Jennifer Wingate-Whyte is head of Casualty &
FinPro UK at Swiss Re Corporate Solutions.
www.strategic-risk-global.com < AIRMIC 2022 EDITION StrategicRISK 19
INSURANCE > D&O

D&O: the search for shelter

ESG, insolvency, cyber fears, emboldened regulators and now
international sanctions – corporate directors have never been more
exposed. But is it possible to find adequate protection?

20 StrategicRISK AIRMIC 2022 EDITION > www.strategic-risk-global.com

A
s the COVID-19 pandemic enters its
third year, directors and officers (D&Os)
across the globe remain vulnerable
to an ever-growing range of risks.
Environmental, social and governance
(ESG) factors, COVID-related liabilities,
insolvencies, cyber attacks and the long arm of the
regulator continue to put company board members
and decision-makers in the firing line. Now, on top of all
that, they must ensure their value chains are compliant
with the growing raft of sanctions against Russia.
Across the globe, risks are greater than ever, and
new ones are emerging. In this uncertain environment,
corporate risk managers are under pressure to
manage the evolving risk landscape and protect their
organisations from company level and director-level
liabilities. Strong governance and risk transfer will
remain vital layers of protection.
As the 2021 Willis Towers Watson Liability Survey
Report outlined, COVID-19 has had a considerable
impact on the scope of D&O risks. Working from home
and subsequent cyber threat were cited as a future driver
of D&O risks, with more organisations implementing
flexible working arrangements after the pandemic’s peak.
AS THE WORLD OPENS UP
The survey’s leading risks were, once again, cyber
attack and data loss. Insolvencies did not feature as a
top-five risk in the WTW 2021 survey, but this exposure
is expected to increase as the economic fallout of
the pandemic hits home. Global stimulus is being
removed, and nations are attempting to move beyond
supportive monetary policy and emergency COVID
measures – meaning that more companies will fail.
Compared to the last year’s survey, more respondents
considered insolvency, bankruptcy or corporate collapse
as “a very or extremely significant risk”. However, it did
not make the top five in the regions surveyed.
In England and Wales, new laws, including the
Pensions Act 2021, have heightened the risk threshold
for directors and officers. The law puts D&Os on the
hook for greater personal penalties for breaches of
pensions regulations, following a series of scandals in
recent times. UK regulators and those further afield have
shown a greater willingness to prosecute corporations
and directors.
Cyber extortion was a new risk, added to the
survey for the first time this year. “It is notable that it
immediately made its way into the number 3 spot,” a
WTW spokesperson says.
Return to work, COVID safety and vaccination status
(as a risk separate from health and safety) ranked fourth
for North America but did not make the top five for any
other region. Health and safety generally did fall within
the top five for Europe, Britain and Australasia, however.
Surprisingly, climate change was not listed as a
top-five risk in any region. But it was cited as the sixth
ranked risk in Britain, Asia and Australia.
Bethany Greenwood, global head of cyber and
executive risk at insurance group Beazley, says D&O risks
are trending towards three main issues. “The current
buzz words around D&O are very much ESG, cyber and
COVID-related,” she says. “However, Beazley’s latest
Risk & Resilience Report found that the key boardroom
risks for 2022 also include supply chain risk and the
reputational risks that arise from social inflation and
employment. It is important that boards focus on these
issues, too, even if they are less top of mind at present.”
Amid ongoing global supply chain constraints,
directors need to assess their risk exposure, Greenwood
says. “Large companies should be leveraging their size
to engage multiple sources of supply wherever possible,
and all businesses should be planning stock resourcing
so that they soften the impact of any disruption.”
With supply chain issues hitting every sector, boards
need to be mindful of potential investor litigation, she
“THERE IS A adds. “There is also a reputational issue at play here.
REPUTATIONAL Companies need to consider how they communicate
ISSUE AT PLAY supply chain issues to shareholders. If supply chain
HERE. IF SUPPLY issues are affecting profits, it’s vital to be able to explain
CHAIN ISSUES clearly what’s happening and what is being done about
ARE AFFECTING it. Boards that fail to do this adequately face risks to
PROFITS, IT’S their share prices, damage to their reputation, and
VITAL TO BE ultimately the danger of shareholder litigation.”
Boardroom exposure to employment risk also
ABLE TO EXPLAIN
looms large, Greenwood says, with social changes
CLEARLY WHAT’S
making workers more likely to speak out if they
HAPPENING AND feel they’ve been wronged, and to “litigate for
WHAT IS BEING compensation”. Amid that threat, “employment risk
DONE ABOUT IT.” needs to be a significant point of focus within the
Global head of cyber and boardroom”, she adds.
executive risk, Beazley “Directors and officers need to lead from the front
Bethany Greenwood to drive a culture of equality. Chief people officers
are increasingly common, and it can be very valuable
to have someone in the C-suite driving the correct
cultures,” Greenwood says. “Boardroom risk is high
around both physical supply chains and employee
rights. Corporate insurance buyers need to be clear
on what their own patterns of risk are in order to take
appropriate steps to address both issues.”
“For example, clients may require more granular
study of their insurance policies, so that they can be
sure they have mitigated rising boardroom risks. This
is something that brokers need to be prepared for, so
that they can work with clients on ensuring that they
are adequately covered.”
NAVIGATING THE HARD MARKET
With so many D&O threats out there, how effective
is risk transfer in protecting companies and their
directors? The continuing hard market means that
TOP FIVE RISKS FACED BY D&Os
Source: Willis Towers Watson
1 CYBER ATTACKS 4 REGULATORY RISKS
2 DATA LOSS 5 HEALTH & SAFETY
3 CYBER EXTORTION
AND/OR ENVIRONMENTAL
PROSECUTION
www.strategic-risk-global.com < AIRMIC 2022 EDITION StrategicRISK 21
INSURANCE > D&O
capacity remain constricted and terms and conditions
considerably tightened. In some jurisdictions, Side
C cover remains nigh-on impossible to secure and
insurance buyers have voiced their frustration over the
renewal process.
Alex Traill, a partner at insurance specialist law
firm BLM, says that while D&O insurance is a
well-established risk mitigation tool, the fact that
emerging risks are growing is also leaving directors
more exposed.
“For example, claims related to the pandemic
include those arising from pre-lockdown activities
but also how the company reacted to lockdown
difficulties and trading,” he says. “Firms are now also
seeing claims relating to the post-lockdown actions
of D&Os from shareholders who are questioning
how transparent their boards were in disclosing the
financial effect of the virus on their businesses.”
The risk areas that come under the umbrella
banner of ESG matters also pose a growing threat to
D&Os and, by default, their organisations. Risks in
those areas are growing as regulatory pressures and
responsibilities build.
“We shouldn’t overlook the growing exposure
of D&Os to environmental, social and corporate
governance matters,” says Traill. “Senior management
is under increasing pressure both internally and from
clients, and they also need to ensure they are meeting
regulatory standards.”
NEXT-LEVEL GOVERNANCE
However, Traill believes companies can take proactive
steps to deal with the evolving risk landscape and
protect themselves. “From a governance perspective,
they [directors and officers] should regularly review
the financial strength of their business and how that
financial strength has been affected by the pandemic.
Boards need to appreciate that it is important to be
transparent with stakeholders.”
“This is particularly pertinent for publicly listed
companies’ statutory obligations of financial
disclosure. If needs be, companies should discuss with
22 StrategicRISK AIRMIC 2022 EDITION > www.strategic-risk-global.com
their auditors the need for balance sheet adjustments
to reflect the impact of COVID,” Traill adds.
From London to Australia, risk and insurance
professionals recognise the need to build robust risk
management frameworks to cope with the growing
threats. It is no longer enough to simply follow the
principles of an effective corporate governance
framework. Directors must document each and every
decision, and ensure these are backed by the most
accurate information available at the time.
“From a legal perspective, documents and
witnesses are the two key ingredients to defending
cases, demonstrating risk assessment planning,
training and consultation,” says Traill.
“Accessing and using appropriate professional
advice, be that legal, financial or insurance, is key to
managing new and evolving D&O risk. The more D&Os “FIRMS ARE NOW
surround themselves with professional expertise and ALSO SEEING
follow the advice received in a logical fashion, the CLAIMS FROM
better protection they will have, and the greater the SHAREHOLDERS
sympathy a court will have for them.” WHO ARE
Eamonn Cunningham, president of the Risk QUESTIONING HOW
and Insurance Management Society of Australasia TRANSPARENT
(RIMS Australia), says companies need to have the THEIR BOARDS
confidence that there is a soundly based enterprise WERE IN
risk management (ERM) framework in place within the
DISCLOSING
organisation, and that it is operating as intended.
“Questions need to be asked, and checks need THE FINANCIAL
to be undertaken, to ensure that this vital part of the EFFECT OF THE
operation works properly,” he says. “Everything today VIRUS ON THEIR
is moving at a rapid pace. Therefore, boards and risk BUSINESSES.”
managers need to be nimble in their thinking and Partner, BLM
able to act early and decisively when required. There Alex Traill
needs to be a well-developed mechanism for horizon
scanning and reporting the results of this quickly into
the boardroom.”
The Australian-based executive tells risk managers to
engage closely with their D&Os and insurance brokers to
spot emerging threats as they come down the line.
“Introduce a mechanism where workshops
are carried out with relevant executives and your
insurance brokers to ensure that you have a really
good idea of the risks you face today and in the near
term. Stress test the output of these workshops to
ensure that they are relevant and effective.”
“And ensure those risks are addressed by a
combination of risk management controls and the
purchase of adequate, fit-for-purpose insurance.” SR
 SPECIAL
SPECIAL REPORT
REPORT > >
CLIMATE CHANGE
INTANGIBLE RISKS

Get a grip on intangibles

The pandemic has focused our
attention on intangible risks as
business models pivoted. But
getting a firm grasp of the data
remains a serious challenge.

IN PARTNERSHIP WITH
SPECIAL REPORT > INTANGIBLE RISKS
T
he increasing intangible nature of the
risk landscape is nothing new, and
yet many of the exposures facing
businesses today remain misunderstood
and poorly served by traditional
insurance products.
On 22 February, StrategicRISK hosted a webinar
‘Evolution of risk – from the tangible to the intangible’
to discuss some of these challenges. Chaired by
StrategicRISK editor Helen Yates, our expert panel
24 StrategicRISK AIRMIC 2022 EDITION > www.strategic-risk-global.com
90%
of the value of
S&P 500 companies are
now made up of
intangible
consisted of Riskonnect CEO Jim assets
Wetekamp, group insurance manager
at Next Group PLC Martin Smyth and risk
consultant Mark Boult.
Latest studies show that intangible assets
make up over 90% of S&P 500 companies, up from
just 17% in 1975. With the pandemic seeing a
further shift in business models, with organisations
divesting of business premises, moving systems to
the cloud and repurposing supply chains, the trend

has further accelerated over the past two years.
“It is important not to be left behind in a world
where an increasing proportion of business value is
made up of intangible assets,” warned Bout. “If you
are behind the curve, you aren’t going to be managing
your risks as well, and therefore things will go wrong
and damage your brand value.”
The webinar considered the value of intangible
assets and how changing priorities during the
COVID crisis have seen a growing appreciation for
In partnership with
digital infrastructure, intellectual property and
talent, brand and reputation, and corporate culture,
among other things. As organisations shift further
towards hybrid working patterns and become ever
more digitised, our experts considered how risk
professionals can better measure, manage and
mitigate intangible risks?
A MANAGER FOR EVERY RISK
The discussion began with a look back at how the
COVID crisis had elevated attention to intangible
exposures and highlighted the need for resilience in an
increasingly uncertain and volatile risk environment.
“What has changed is an appreciation that risk
is distributed across the business,” said Smyth.
“Everybody in the business is a risk manager of some
sort, even if they don’t see themselves that way.”
Wetekamp noted that different stakeholders
were being brought into the risk management
process than may have been in the past. This includes
HR, legal and marketing teams where risks involving “WHAT HAS
people, intellectual property and brand are concerned, CHANGED IS AN
for instance. APPRECIATION
“The business continuity and operational resilience THAT RISK IS
point is something that has risen to the top in the DISTRIBUTED
discussion [on the importance of risk management] and ACROSS THE
it is impacting the way we work. Linking to the intangible BUSINESS.
asset aspect, it has brought new stakeholders into the EVERYBODY IN
risk management process that you didn’t have before or
THE BUSINESS IS A
that you have to engage in a different way.”
RISK MANAGER OF
“ ou’ve got to make sure you have a defined risk
owner for each one of the intangible assets or areas SOME SORT.”
of risk,” he said. “This will create discussion internally Group insurance manager,
around how those things come together from a Next Group PLC
Martin Smyth
scenario standpoint.”
As organisations become more reliant on digital
ecosystems, with the pandemic driving a further
shift from server-based systems to cloud-hosted
architecture, it is essential for risk teams to have a
direct line into the CIO and IT function. Panellists
acknowledged there is no turning back and that it
was imperative to keep abreast of new and emerging
vulnerabilities as threats, including ransomware and
supply chain attacks, continue to evolve.
A question was raised about cloud concentration
and how this introduced the potential for risk
aggregations.
“Aren’t we there already?” asked Wetekamp. “If
you’re worried about how much of our critical business
operations, data and processes are being consolidated
in the digital experience, I would argue we’re over
that threshold now. There are four or five systems or
platforms that if they had a material interruption (and
Twitter is not down) we know it about it within seconds.
That has massive impacts on commerce, the flow of
data, procurement and supply chains.”
“It is less about whether that is going to emerge
as a risk and more about, what are some of the
strategies we’re going to employ a little bit differently.
Coming out of COVID, we still have very traditional
procurement practices. Should we think about
alternative vendors and distributing our relationships a
www.strategic-risk-global.com < AIRMIC 2022 EDITION StrategicRISK 25
SPECIAL REPORT > INTANGIBLE RISKS
bit more? Traditional risk mitigation around
supply chain and getting our product out the door apply
in this context.”
MOTIVATIONS FOR ESG
Inevitably, ESG-related risks formed a significant
part of the discussion, given how attention to
environmental, social and governance factors has
elevated the importance of intangible assets,
including people, IP and the natural world. Doing
the right thing – and being seen to do the right thing
in a world where stakeholder capitalism is becoming
the norm – is also intrinsically connected to brand
value and reputation.
As investors, regulators and other stakeholders
ramp up their expectations on the ESG front,
including new reporting requirements, organisations
are under growing scrutiny. The climate scenario
testing requirements under climate frameworks
such as TCFD do present a role for the insurance
industry, thought Smyth. “Brokers, carriers and
other service providers have got a wealth of
knowledge in being able to quantify what that risk
looks like to the business, which in some cases can
be intangible.”
“Going through these types of exercises, you begin
to see how ESG as a risk of a business is made up of a
lot of component risks – some of which are physical,
but many of which are not,” he continued. “It’s great
to be able to quantify it, but I don’t think at this time
much of it is transferable outside of the physical world
and that’s somewhat concerning.”
The broad nature of risks and opportunities that fall
under the banner of ESG is a challenge in and of itself.
Organisations are having to think about the impacts
they have as a business and their responsibilities to the
world around them in a completely different way than
ever before. And there is no room from greenwashing
or clever marketing tricks.
“ESG is making you think about the whole life cycle
of a product – the whole beginning to end of your
supply chain of an extended enterprise. Although you
can control things that you physically manage or do
yourself, and that gives you some intangible value, it
can be degraded by something happening upstream or
downstream in the process,” Smyth said.
“That’s not necessarily going to be a physical thing
– it could be related to diversity, pollution, ethics. All
those things may impact your intangible value and
then people stop buying from you,” he continued.
“The risk manager has to look over the much bigger
picture and think not just about the financial impact,
but also how society and other stakeholders will view
what you’re doing.”
PREPARING FOR THE NEXT SHOCK
The pandemic once again highlighted the
interconnected nature of risk in the world we live in,
with COVID-19 and country lockdowns exacerbating
a broad range of business risks, including supply
chain disruptions and cyber vulnerabilities. The sheer
complexity of this risk landscape was brought to life
26 StrategicRISK AIRMIC 2022 EDITION > www.strategic-risk-global.com
in the charts of this year’s World Economic Forum’s
Global Risk Report, published in January 2022
(www.weforum.org/reports/global-risks-report-2022/
data-on-global-risks-perceptions#report-nav). Yet, at
the time of writing, even that feels out of date.
Speaking as the Ukraine crisis was unfolding,
Smyth noted that ahead of the pandemic, Black
Swan-type events had, in many instances, been
consigned to the history books. Now corporates are
carrying out more scenario analysis to consider the “IS IT REALLY TRUE
impact of other potential shocks, however unlikely WE DON’T KNOW
they may at first appear. HOW TO VALUE
“It is important to take an open-minded approach OUR INTANGIBLE
to these risks. We’ve all been in meetings where ASSETS? THERE
someone has discarded what could be a valid ARE SOME
scenario or approach just because they didn’t QUANTIFICATIONS
believe it could happen in that way. And that’s YOU CAN DO IN
quite a dangerous narrative to have within the ERM
THIS AREA THAT
framework.”
ARE REALLY
Events that lie outside of “living memory” are the
ones that can blindside. “Global pandemics seem to PHYSICAL AND
happen about once every 100 years, and we should SPECIFIC.”
know to expect this,” said Boult. ”Other scenarios will CEO, Riskonnect
happen on some sort of regularity. You need to look Jim Wetekamp
at the future and think about a range of different types
of impact, how you manage similar types of risks and
build in resilience.”
OUT OF REACH?
The esoteric nature of intangible risks inevitably
makes them difficult to measure and quantify. But
there are ways of overcoming these challenges. “One
of the really good exercises is to look at events that
have happened and see where they fit into your risk
universe, where the tolerances were and were they
material,” said Smyth.
Wetekamp pointed to the financial services and
healthcare sectors as examples of industries that are
pioneering approaches to generating data around
intangibles risk. “These two markets are the canary
in the coal mine in terms of what other organisations
will try to do around more effectively managing risk,”
he said.
“Is it really true we don’t know how to value
our intangible assets?” he asked. “There are some
quantifications you can do in this area that are
really physical and specific, around our operational
resilience and even how we source and procure and
what third parties we work with. All of those things are
really trackable.”
“For a long time, organisations have measured
and understood consumer sentiment and acted
and behaved accordingly to protect their brand and
grow their business. Employee sentiment surveys
record what makes people happy, excited and
mission-driven.”
“It’s the investor sentiment – how it impacts ESG
investing, stock price and future performance – that is
now making the gamble on this highly unpredictable,”
added Wetekamp. “It’s a future benefit that we can’t
quantify that has changed the way we talk about ESG
and intangible risks today.” SR

Do you know your value chain?
How well you respond to geopolitical risks depends on both your own
decisions and those of third parties. So how do you monitor behaviour and
standards across your value chain, asks Riskonnect’s Jim Wetekamp.
I
ntangible risks, like geopolitical risks, can have a
deep impact on business. Immigration and travel
restrictions can limit availability of talent and
key skill sets. Slow response to social issues or
the suspicious activities of third parties overseas
could lead to reputational consequences. Trade
conflicts, tariffs, and sanctions threaten supply-chain
performance. Recessions, inflation, and economic
uncertainty can slow revenue growth.
Each of these situations can have a severe impact on
an organisation. Together, however, the impact could
be devastating for those that haven’t properly prepared.
An organisation’s resilience to geopolitical risks
heavily depends on third parties. One poor decision by
a vendor can poke holes in the defences you’ve worked
hard to build. Do your due diligence before the contract
is signed to ensure you only engage with trusted vendors
that meet your standards and uphold your values.
And make sure you’re not associating with any
vendors that may cause harm to the company,
including involvement in malicious activity, terrorist
groups, or other risky behaviours. Verify with detailed
questionnaires that your third parties do, in fact,
operate as claimed.
THE NEED FOR INSIGHT-LED DECISIONS
Confident, fast decision-making can minimise
geopolitical disruption. And your ability to
In partnership with
“ONLY ENGAGE
WITH TRUSTED
VENDORS THAT
MEET YOUR
STANDARDS AND
UPHOLD YOUR
VALUES.”
CEO, Riskonnect
Jim Wetekamp
respond quickly requires facts – not gut feelings or
educated guesses. One overlooked threat – minor as it
may appear –could trigger a series of events that add
up to catastrophe.
Technology is instrumental in creating a complete
and contextual view of an organisation’s risk
environment. The right software centralises risk data
from across the organisation, connects the dots
between risks, and makes the information actionable.
You’ll have a clear view of how one risk could ripple
through multiple areas – e.g., reputation, competitive
position, strategic growth – and what you need to do
to prepare.
We’ve all learned a lesson over these past couple
of years about the perils of disregarding even the
most unlikely scenarios. No one wants to be caught
off guard by an unanticipated geopolitical risk. What
can you do now to strengthen your infrastructure to
withstand a new wave of threats? Because that next
event may be already be on its way. SR
Jim Wetekamp is CEO of Riskonnect.
www.strategic-risk-global.com < AIRMIC 2022 EDITION StrategicRISK 27
 In partnership with

Ukraine reawakens
business to the importance
of political risk
The conflict calls for a strategic re-evaluation of footprints,
supply chains, relationships, company cultures, business
functions and risk appetite, explains Control Risks’ Claudine Fry.

T
he catastrophic events in Ukraine have For some businesses, there will need to be a
shattered such assumptions, and left strategic re-evaluation of footprints, supply
businesses no option but to respond chains, relationships, company cultures, business
quickly and decisively. While the immense functions and risk appetite to ensure resilience
human suffering is front of mind, the impact in a world profoundly changed by the Ukraine
of the conflict in Ukraine on business has been deep conflagration.
and wide. There have been almost-immediate impacts Organisations are operating in a world reawakened
on the safety of people, the resilience of supply chains, to the significance of understanding and managing
sanctions risk exposure and the operational costs political risk. What is more, businesses are being
associated with rising commodity prices. “BUSINESSES ARE held to account for positions they are taking in
Countless companies have had to cease or suspend BEING HELD TO response to political risk events more than ever before.
operations in Russia, the 11th largest economy in the ACCOUNT FOR The rush of Western companies fleeing Russia is
world. Businesses are also trying to understand the THEIR RESPONSE testament to this trend.
impact of these events beyond the immediate term as TO POLITICAL RISK Adopting a position on a geopolitical risk issue can
it is clear their legacy will be lasting. EVENTS. THE RUSH be complex and consequential in ways that may not
No sector will go untouched. No part of the world OF COMPANIES be immediately well-understood. It requires careful
will escape the effects, be they rocketing prices for FLEEING RUSSIA consideration, particularly for global companies doing
food and oil; pressures on services and politics caused business in an increasingly polarised and hostile
IS TESTAMENT TO
by migration changed inflows and asset seizures international environment. SR
THIS TREND.”
influenced by sanctions or a change in access to
resources or influence. Principal, Control Risks Claudine Fry is principal at Control Risks.
Claudine Fry
WIDESPREAD RISK IMPLICATIONS
The pace of developments will slow, but watch for
things that may suddenly change the pace. Europe will
be living with active conflict of some kind on its soil
long-term. The status of Ukraine will remain contested
and the security situation in and around Ukraine will
be hostile. Key relationships between impacted states
will remain belligerent, combative and militaristic.
Beyond the immediate neighbourhood of Ukraine,
societies and businesses have only just begun to feel
the implications of this crisis. These implications will
manifest in higher political risk, everywhere.
The succession of events such as Brexit, the
election Donald Trump as US President, the pandemic,
and now Ukraine, make it clear that political risk
events typically seen as low likelihood but high impact
demand closer attention by the board, and more
engagement beyond the board, too.
www.strategic-risk-global.com < AIRMIC 2022 EDITION StrategicRISK 29
SPECIAL REPORT > INTANGIBLE RISKS

Cyber and reputation:

your top intangible fears
Cancel culture and cyber intrusions can ‘kill’, and survey respondents
know this. Many anticipate more red tape as regulators seek to get a
handle on these ever-growing emerging risks.

30 StrategicRISK AIRMIC 2022 EDITION > www.strategic-risk-global.com

 In partnership with

WHAT INTANGIBLE RISKS/EXPOSURES ARE OF MOST CONCERN

TO YOUR ORGANISATION? (CHOOSE UP TO THREE)

CYBER 86%
REPUTATION 64%
INTELLECTUAL PROPERTY 43%
REGULATION 43% “OVER THE NEXT
FIVE YEARS, WE
NON-DAMAGE BUSINESS INTERRUPTION 36% WILL SEE NEW
TYPES OF RISKS.

ESG 36% MY GUESS IS THAT

THE EMERGENCE
OF BLOCKCHAIN
ECONOMIC 29% TECHNOLOGY MAY
BE DRIVING THIS,
CLIMATE TRANSITION
14% BUT IT COULD
BE SOMETHING
COMPLETELY
PRODUCT RECALL
7% DIFFERENT.”

OTHER
7% $ 600m
Cost to businesses of
Founder, AKTUS
Hans Læssøe

the top ten cyber

E
intrusions in 2021

ighty-six percent of risk managers are wary of how suddenly

respondents said cyber
was the intangible risk of most
concern to their organisation in
2022. This is according to a survey
of risk professionals carried out by
StrategicRISK in February.
It was followed by reputation in second place
(64%) and intellectual property and regulation in
joint third position (43%) and non-damage business
interruption (NDBI) and ESG in joint fourth (36%).
Fifteen percent of respondents said they had suffered
a major loss over the last 12 months relating to an
intangible risk.
The impact of cyber attacks on organisations –
including costs relating to network disruption – are
clearly front of mind when it comes to intangible
exposures.
And it is not difficult to see why. The top ten
intrusions in 2021 costs companies over $600m, resulted
in the loss of tens of millions of sensitive data records
and shut down one back for over a week, according to
research by Tokio Marine HCC International.
As for reputation, one does not have to look much
further than current newspaper headlines to see why
hard won reputations can be lost.
REAL THREAT OF CANCEL CULTURE
AKTUS founder and former LEGO Group chief risk
officer Hans L ss e is not surprised that reputation
ranks so highly among the list of concerns.
As he explains, a dented reputation may ‘kill’
the organisation and is complicated for the
following reasons:
• A risk may materialise due to change of consumer
perceptions (think of the #MeToo movement)
rather than due to change of behaviour.
• A risk may materialise based on some untrue
accusations made by someone who is ‘out to
get you’. “I had an example of that while at the
LEGO Group, where activists were trying to
influence a partner company to change behaviour
and (unsuccessfully) leveraged the LEGO Group as
a means to the end,” says L ss e.
• A risk may materialise based on the bad behaviour
of one ‘rogue’ person/executive or person you
relate to (think Spotify right now).
• A risk may materialise while adhering to legislative
controls, which appear to be inefficient or

www.strategic-risk-global.com < AIRMIC 2022 EDITION StrategicRISK 31

SPECIAL REPORT > INTANGIBLE RISKS
HAS YOUR ORGANISATION SUFFERED A
� �
MAJOR LOSS OVER THE LAST 12 MONTHS
RELATED TO AN INTANGIBLE RISK?
�
85%
YES
NO
15%
�
inadequate (for example, money laundering
through a bank).
Respondents acknowledged the global pandemic
had exacerbated some of the intangible risks faced
by their organisation. This includes exposures
relating to new, hybrid ways of working and the
direct and indirect business interruption resulting
from company lockdowns.
CREATING A SCALE
According to L ss e, however, pandemic is a tangible
risk that materialised, and one that companies should
have been prepared for.
Many are taking steps to better measure and
manage their intangible exposures going forward,
particularly in the absence of traditional insurance
solutions.
In order to manage the risk, you first must be able
to measure it. But with intangibles, other metrics are
often needed. “The key challenge is to rate scale it,”
says L ss e. “Let us take reputation for one, and
apply a 1–5 level scale:
• Local press and public attention for less than
one week. Very limited social media attention.
• Nationwide press attention for less than one
week and/or local attention for two to three
weeks. One to two weeks of some social media
attention.
• International press attention, locally the issue
lingers on for months and international social
media attention exceeds two weeks.
• International headline press attention.
Significant and global’ social media attention
for weeks.
32 StrategicRISK AIRMIC 2022 EDITION > www.strategic-risk-global.com
HOW WILL CONCERNS OVER THE SYSTEMIC NATURE OF
INTANGIBLE RISKS IMPACT REGULATORY REQUIREMENTS
GOING FORWARD?
REGULATION WILL STAY THE SAME
85%
REGULATION WILL INCREASE
15%
REGULATION WILL DECREASE
0%
• International top story. Massive social media
‘outrage’ for weeks and weeks on end.”
The vast majority of respondents (85%) thought the
systemic nature of intangible risks would impact
regulatory requirements going forward. As ESG grows
“MORE TYPES in importance and supervisors address the systemic
OF RISKS WILL nature of cyber and pandemic-related risks, more
EMERGE AND rules and requirements appear likely.
THE COMPLEXITY Fifteen percent thought the level of regulation
WILL INCREASE would stay roughly the same, but nobody thought
AS COMPANIES, oversight would reduce any time soon.
SUPPLY CHAINS,
BUSINESSES AND IT’S ONLY GETTING MORE COMPLEX
PROCESSES GETS As for the future, respondents said firms must get
better at anticipating emerging intangible risks and
INTERTWINED
integrating these into their strategic risk management
AND AUTOMATED frameworks.
– ALL LEADING “More types of risks will emerge and the complexity
TO REDUCED will increase as companies, supply chains, businesses
TRANSPARENCY.” and processes gets intertwined and automated – all
Founder, AKTUS leading to reduced transparency,” says L ss e.
Hans Læssøe “Suddenly, the butterfly effect’ may come very much
into play in business. For example, there is currently a
shortage of specific materials, which in turn creates a
shortage of computer chips being manufactured, which
stalls the sale of new cars. If I were a car manufacturer,
I may not consider the shortage of chip materials as
being a risk to my ability to sell cars – but it is.”
“Over the next two to five years, we will probably
see new types of risks for the first time ever some
we have never thought about,” he adds. “My guess
is that the emergence of blockchain technology and
metaverses may be driving this, but it could also be
something completely different.” SR
RISK LEADERS > DISASTER RESPONSE
Reasons to be… cheerful?
With access to some of science’s most stark
observations on climate change, NASA’s
Dr David Green could be forgiven for feeling
somewhat pessimistic about our future.
And yet he is anything but.
O
ver the past two and a half years since
the COVID-19 pandemic ripped across
the globe, Dr David Green, NASA advisor
for Disaster Risk Reduction & Resilience,
has seen a marked shift in how we think
about compound risks. It is this – and
a confidence in the new generation that gives him
confidence in mankind’s ability to tackle the major
existential risks of the future.
“I just spent the afternoon talking to interns in their
early careers,” he says during a visit to London, having
spent the previous week at a wildfire summit in Italy.
“I’m incredibly enthusiastic about the next generation.
They do not see the barriers or the silos of the previous
generations and it is changing how governments are
working and how communities interact.”
“You can get caught up in the whole ‘woe is me,
things are terrible’ mentality. But there are a lot of
tools and applications that people have available now
that we didn’t have before. This is why NASA takes to
heart championing open science approaches, because
the more we can get it out there, the more the data
is available, the easier it is for people to turn that into
solutions.”
EXPERIENCING THE BUTTERFLY EFFECT
For the risk community (and fans of the WEF Global
Risks Report’s interconnections map), the fact that
risks are highly interlinked is nothing new. But for
decision-makers in both the public and private sector
– those responsible for making the choices that relate
to society’s future resilience recent experience has
“YOU CAN GET opened their eyes to butterfly effects that are inevitable
CAUGHT UP IN in a highly connected, global world.
THE WHOLE ‘WOE From the impact of the lockdowns on global supply
IS ME, THINGS chains and the influence of a changing climate on the
ARE TERRIBLE’ frequency and severity of natural perils, through to the
MENTALITY. BUT impact of the Russia-Ukraine conflict on commodity
THERE ARE A LOT prices and inflation the compound nature of risk has
OF TOOLS AND never been more apparent, Green tells StrategicRISK.
“Pre-COVID, with issues such as health, we
APPLICATIONS
didn’t understand the compound effect. Initially,
THAT PEOPLE HAVE governments thought it was just a health issue and
AVAILABLE NOW then we realised it touches on transportation and
THAT WE DIDN’T logistics, social decision-making and governance,
HAVE BEFORE.” emergency management and the distribution of
materials, among other things.”
Advisor for Disaster
Risk Reduction & Observations from NASA satellites and models
Resilience, NASA are increasingly used to support decisions and
Dr David Green actions, to promote innovation and build capacity in
www.strategic-risk-global.com < AIRMIC 2022 EDITION StrategicRISK 33
RISK LEADERS > DISASTER RESPONSE
the use of earth science. Understanding the impact of
climate on natural hazard is in Green’s blood. Before
joining NASA in 201 , he was at the US National
Oceanic and Atmospheric Administration, latterly
as lead for emerging science and services, National
Weather Service.
ACTING FAST IN AN EMERGENCY
Near real-time access to damage assessments from
severe weather events allows a far more proactive
response than was possible before. “You might
read about a hurricane or storm in the media, but
the stories are going deeper because now you
can actually connect impacts and decisions on
the ground,” explains Green. “There is much more
translation and scalability of information.”
“You might have a factory in the UK relying on
a supply of materials during the South East Asia
monsoon season, for instance. In the past, the
workforce here was not necessarily aware they were
dependent on something from the other side of the
world. We’re monitoring that entire world system
now, so you can take proactive measures and source
supplies from somewhere else.”
“We’re bringing our earth observation approach
to help inform that awareness so risk managers can
take the appropriate actions,” he continues. “Supply
chains are now more global and so we get in there
when things happen. We’re learning all the time.
When Iceland has its next eruption, we will have the
experience we’ve learned to keep the airspace open.”
Earth observation information can shorten the time
it takes to settle a claim and provide essential liquidity
in the aftermath of a major natural catastrophe
event. This is also where there is a role for parametric
solutions. “It often takes too long to issue a claim, but
we can see where a crop failure is likely to happen and
we can notify the bank, release those funds, tell the
Red Cross or the UN to get in there earlier.”
NASA’s model insights also assist with longer-term
planning and investments, for instance ensuring that
infrastructure rebuilding following a natural catastrophe
will remain resilient and sustainable in ten to 20 years’
time. “We can shrink and compress the time of our
actions, and we can see that perhaps a long-term
change means we need to commit for a
longer time. That’s where we tie our
short-term strategy to longer-term
investments.”
CONNECT THE DOTS
In an era of the explosion
of data, there is no value in
holding onto raw material,
thinks Green. Instead,
NASA’s approach is to not
only collect and distribute
earth observation and
meteorological insights,
but to ensure it ends up in the
right hands.
“We take an earth systems
34 StrategicRISK AIRMIC 2022 EDITION > www.strategic-risk-global.com
approach, which means we
need to be working with other
organisations, the private sector,
academics, humanitarians,
philanthropists, different
countries and regions – which
means we interact with people from
around the world,” says Green.
“Most people think of NASA as looking
up at the universe – above and beyond – but
NASA, most importantly, looks at the earth, as a
system we live on and how we interact with that. We
use our science, our observations our satellites and our
relationships to look at those changes.”
Collaboration is essential, as is the ability to
communicate risk in a way that non-experts can
understand and leverage. This is particularly important
when it comes to finding solutions to tackle the climate
crisis, he thinks. This is one reason for his trip to London,
“WE MUST FIGURE to speak to insurance industry practitioners as they seek
OUT HOW TO to better understand evolving catastrophe risk.
COLLABORATE, “We look at how hazard systems function and
AND WE CAN interact, and sometimes they are disrupted and we can
USE OUR NASA see some of those changes. The insurance industry is
BRAND TO BRING looking at what measures need to be put in place to
dissipate some of those impacts so it’s a very close
PEOPLE TOGETHER
alignment. We are looking at how things change and
FROM DIFFERENT
we have to work with partners to understand what the
DISCIPLINES, TO implications of those changes are.”
REALLY GET A “Part of our strategy is no one has one solution so we
HANDLE ON WHAT must figure out how to collaborate, and if nothing else,
THE NATURE we can use our NASA brand to bring people together
OF PERILS OR from different disciplines, to really get a handle on what
THE NATURE OF the nature of perils or the nature of impacts is.”
IMPACTS IS.” It is through facilitating these collaborations that
we are able to further advance understanding around
Advisor for Disaster compound risk and how this could evolve over time.
Risk Reduction &
Resilience, NASA
Green is working closely with the science healthcare
Dr David Green communities, for instance, in an effort to better predict
how environmental changes will impact health.
“It’s a very practical approach. We can see changes
in heat and water and we’re able to link this to
understand where people might be vulnerable to
respiratory disease or prone to water contamination.
We’re connecting the full story.”
BETTER UNDERSTANDING
“NASA is also getting better at communicating. Talking to
the media, using tools and visualisation to help people
reach that aha’ moment for them individually. This is
to ensure decision-makers don’t just receive a written
report but have better communications to actually
understand the implications of the change in risks.”
“With those communications, there is that
realisation that you yourself are part of the solution,
part of that flow of the story,” he adds. “At NASA, we
think of visualisation and communication as no longer
a separate part of the science and technology solutions
but an integral part of getting the message out.” SR
Dr David Green is NASA advisor for Disaster Risk
Reduction & Resilience.
RISK LEADERS > ESG

Just take the first step

Knowing where to start when building an ESG framework is daunting for
the most seasoned risk manager. Marsh Advisory’s Dr Beverley Adams
knows stepping out onto that path is often the hardest part, but if you
don’t assess your ESG, someone else will.

H
aving a business used to be that’s where, as Airmic, we have a deep responsibility
about profit. But we’re in a to ensure we look at every element of this.
different world today. It’s now The risk manager can’t avoid it. From an insurance “EVERY WEEK, I
about people, planet… and standpoint, insurers are beginning to ask them about HAVE BUSINESSES
profitability. It’s a world where we their ESG credentials. We came up with a saying: ‘If COMING TO US
are more focused on sustainability you don’t assess your ESG and climate risk, someone WHO HAVEN’T YET
and people, and companies can’t afford to ignore else will’. These days, you are being judged and REALLY EMBRACED
that, because their customers will start to think with scrutinised and that’s where ESG differs from CSR ESG. WE HAVE RISK
their feet. it’s the outside world looking at you. MANAGERS WHO
Getting started on ESG [environmental, social HAVE BEEN DOING
and corporate governance] is a bit like dealing with RISK MANAGERS NEEDED
IT FOR YEARS AND
other emerging risks, such as cyber. Right at the very That’s why the reputation part of it is such a concern
beginning, when we were thinking about how we and that’s borne out by this year’s Airmic survey.
RISK MANAGERS
build this into your day-to-day work, that’s where it The other reason risk managers have to be involved WHO ARE RIGHT AT
was difficult. is regulation. TCFD is now mandatory for many THE BEGINNING OF
Every week, I have businesses coming to us businesses and an entire pillar of the framework is THEIR JOURNEY.”
who haven’t yet really embraced ESG. We have risk devoted to risk management, with scenario modelling
Head of climate and
managers who have been doing it for several years among the required approaches. catastrophe resilience,
and risk managers who are right at the beginning The risk manager therefore becomes a bit of a Marsh Advisory
of their journey. My role is to work with them, focal point, because they have a lot of that knowledge Dr Beverley Adams
wherever they are on the journey, and help them already. Risk managers are practical
get up to speed. people and in their day-to-day
At Marsh we’re trying to demystify it and to role they think about risk
build it out as a six-step process. It’s about mitigation.
understanding what the risk is and then determining With ESG, mitigation
what you’re going to do about it. Once you’ve started is about change and
to get your arms around it, you can then look at your adaptation, and
wider value chain. When businesses seek to make laying that out
other businesses accountable, it naturally drives thoughtfully,
change and adaptation. bearing in mind
every company
JUDGE BEFORE YOU ARE JUDGED is on their own
We don’t have all the answers and in five years’ journey to
time ESG will be much more mature. But as net zero. SR
we’re at the start of the journey, we’ve got to lay
the right foundations. ou’ve got to start as you Dr Beverley
mean to go on. Adams is
Some people haven’t had the luxury of taking a consulting
lot of time over this, because there has been director and
pressure for things like accountability for TCFD head of climate
reporting, for instance. So some people have had to and catastrophe
go from zero to 100 miles per hour. But then they still resilience at Marsh
need to back up and look at all the ESG risks. And Advisory.
Featuring
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