’For some of the risks that businesses face, they will require a transformational response,’ says managing director

Risk managers and insurers have been told that a transformation over the way risks are managed is on the horizon.

Suki Basi, managing director of risk modelling company Russell Group, explained that the market was shifting to thinking about addressing risks earlier rather than a post loss response.

Speaking during the Airmic conference in Manchester, Basi said that these new behaviours could be implemented into a company’s culture.

And he felt the shift would be more evolutionary rather than a revolution.

“Businesses need to move to a culture where risks are identified early and fully understood – it will require a change in the emphasis we put in risk management,” he said.

“For some of the risks that businesses face, they will require a transformational response [and] to deliver that transformation it is either a revolution or evolution.

“I believe it needs to be evolution where we can embed these new behaviours into the company culture and begin to deliver proactive risk management.”

’Fundamental change’

The Airmic conference, which runs from 19-21 June 2023, provides experts a chance to network with peers, meet business partners and enhance professional development in the insurance and risk management sectors.

Basi explained that for a company to succeed in changing the way it thinks about risk management, its entire staff had to play a part.

“It has to go beyond the risk manager, every member of staff needs to take responsibility,” he said.

Basi highlighted environmental, social and governance (ESG) as an example, claiming “that will see exposures flow into and out of a business as they look to tackle issues such as their emissions”.

“[Companies] will need to look at how they manage those risks and how they transfer those risks,” he said.

”It will be a case of deciding what, if any risks, you want to transfer rather than a case of having a need to transfer risks.

“There is a fundamental change coming and accessing the required skills will be an issue in the future.

”If we want to attract the best of the new generation into insurance and risk management, we need to be clear on our approach and the role they will have to play.”


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