ST. LOUIS, May 10, 2017 /PRNewswire/ -- A survey of risk management professionals by Lockton Companies shows that they face a growing array of challenges and new demands unforeseen even a decade ago.
The survey, to be fully discussed at Lockton's Complex Risk Symposium June 13 and 14 in St. Louis, shows that risk managers are increasingly involved with senior management and are more likely involved in strategic business issues, including M&A activity.
The findings show that the C-suite, and specifically CFOs, are increasingly interested in the balance between the risk retained and risk transferred. Additionally, CFOs are more interested in the appropriateness and efficiency of programs and not only focused on program costs.
According to Ryan Brown, Senior Vice President and Client Advocate for Lockton Companies, "Whether it's claims, contractual liability matters or M&A, risk managers are being asked to do more with less."
Other key findings of the survey include:
- regardless of risk management department size (from 1 to 6+), there are many issues facing risk managers, from performing risk assessments to building a stronger understanding of the business operations to creating better administrative processes along with departmental procedures.
- CFOs tend to focus on strategic issues and less on tactics. Cyber risk is the most prevalent risk that respondents identified that CFOs are interested in exploring. From understanding and quantifying the exposures related to cyber events, assessing the organizational readiness for such events, to the financial resources available to backstop such an event (current insurance program response and available insurance products). There is demand for more strategic advice as brokers' historical focus of transactional excellence and broad understanding of the insurance marketplace is considered "table stakes" as opposed to the centerpiece of a broker's value proposition.
Brown says the survey results point out that risk managers could become overwhelmed and mired in the day to day tasks of serving their internal constituents, and that it is difficult to make the all-important pivot to strategic issues. He says the survey results indicate that those risk managers able to tackle strategic issues have a "bigger seat at the table" with senior management by way of routine communication, involvement in broader organizational issues, and an integral role in M&A activities.
Lockton believes that the role of the broker must evolve to support today's risk manager. "For the broker's value proposition to match the needs of its clients, a broker must provide administrative relief to its risk managers and provide unfettered access to strategic advice as a part of its core service," according to Brown. "The days of a broker's role solely placing coverage and then 'selling' strategic advice as an 'add-on' is in conflict with the needs of a risk manager operating in a resource-scarce environment," Brown said.
About The 2017 Complex Risk Symposium
The Lockton Risk Management Survey findings form the foundation of discussion topics at this year's Complex Risk Symposium, to be held June 13 and 14 in St. Louis at the Four Seasons Hotel. This invitation-only Symposium brings together risk managers and industry leaders to focus on complex risk issues and foster dialogue around today's most pressing risk management challenges.
Bringing together many of the world's leading insurers along with corporate risk management executives and senior-level decision makers, the Symposium will explore best practices and practical solutions. Along with a featured Executive Panel Discussion and an inspiring keynote address by John O'Leary, session topics will include: Insuring Punitive Damages, Cyber Risks, Workers Comp Trends, hot Micro Topics, How Artificial Intelligence Will Change the World, and Crisis Management.
For an advance summary of survey findings, please http://complexrisksymposium.com/survey-results/
About Lockton Companies
More than 6,000 professionals at Lockton provide 50,000 clients around the world with risk management, insurance, employee benefits consulting, and retirement services that improve their businesses. From its founding in 1966 in Kansas City, Missouri, Lockton has attracted entrepreneurial professionals who have driven its growth to become the largest privately held, independent insurance broker in the world and 9th largest overall.
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SOURCE Lockton Companies