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Designing insurance risk frameworks

An organisation is only as strong as the defences it builds. We look at the five key elements when designing a robust insurance risk framework to aid resilience.
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By Julia Reffell , 

Head of Public Sector Practice, UK Corporate

21/03/2023 · 2 minute read

An organisation is only as strong as the defences it builds. Organisational resilience provides assurance when considering key stakeholders, employees, society and the people an organisation serves. The effective integration of enterprise risk management (ERM) with insurable risk processes plays a central part in enabling resilience. When risk and insurance functions adopt a holistic approach, establishing firm links and proactive procedures, informed strategic decisions can be made.

We know, however, that we inhabit a changing world, a landscape of economic, geopolitical, environmental and technological challenges. As highlighted by the Global Risks Report 2022[1], ‘new risks evolve continually’, and it is in the face of these ever-evolving factors that organisations must navigate safe passage. It is crucial to understand the spectrum of these risks and the value of a robust insurable risk framework.

The five key components of an insurance risk framework:
  1. Governance and infrastructure
  2. Identification and assessment
  3. Reporting and monitoring
  4. Transfer resourcing
  5. Third-party management

Find out more about these five key components and the activities to consider in your organisation. Read the full article.

 

Source:
[1]  Global Risks Report 2022

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This article was originally published in the January 2023 edition of stronger, the ALARM journal. ALARM is a not-for-profit membership association that has supported risk management professionals for over 30 years. They provide members with outstanding support to achieve professional excellence, including education, training, guidance, networking, and industry recognition for best practice across risk management and related services.