How can you manage insurance risks in a global business?

由人工智能和领英社区提供技术支持

If you run a global business, you face various insurance risks that can affect your operations, assets, and reputation. Insurance risks are the uncertainties or losses that arise from the use or transfer of insurance products or services. To manage these risks effectively, you need to understand the sources, types, and consequences of insurance risks, and adopt some strategies to reduce or transfer them. Here are some tips to help you manage insurance risks in a global business.

此文章中的业界达人

由社区从 4 条内容中精选。了解更多

Lucas Engl

Finance and Cybersecurity Expert || Managing Risk as Specialty Insurance Underwriter for Cyber & Technology ||…
Mohamed Attia

Risk Management Expert | Credit Certified | Credit Scoring (CERM)

1 Identify your insurance risks

Identifying insurance risks is the first step to managing them. Risk assessment, risk mapping, and scenario analysis are all methods you can use to evaluate the potential insurance risks that your global business may encounter. Common sources of insurance risks include regulatory changes, market fluctuations, operational disruptions, and reputational damage. Regulatory changes can affect compliance, coverage, and costs; market fluctuations can affect profitability, liquidity, and solvency; operational disruptions can increase claims or liabilities; and reputational damage can damage trust and goodwill, as well as customer retention, market share, and competitive advantage.

添加您的观点

Lucas Engl

Finance and Cybersecurity Expert || Managing Risk as Specialty Insurance Underwriter for Cyber & Technology || MSc-Finance, CAS-Cybersecurity, CS50;
举报内容
Specifically for Cyber Insurance, identifying the following aspects gives a comprehensive assessment of the risk: ?Check if there is a Risk Assessment Framework which encompassed technological protection, regulatory compliance, third-party dependencies, and potential financial impacts of an incident. ?Are comprehensive 24/7 incident response plans, monitoring and business continuity strategies developed and tailored to global operations. ?Asset Inventory and Classification to identify and categorize critical assets and data is in place. ?Are Vulnerability Assessments done to identify weaknesses. ?Review past incidents and breaches to understand historical vulnerabilities and patterns. ?Educate employees on cybersecurity best practices.

已翻译

赞

2 Classify your insurance risks

The next step to manage insurance risks is to classify them. You can use criteria such as frequency, severity, controllability, or predictability to categorize your risks into different levels or types. Common types of insurance risks include underwriting risk, credit risk, operational risk, strategic risk, and legal risk. Underwriting risk involves the premiums charged for insurance products or services not covering the claims or expenses incurred. Credit risk is the risk of parties not paying their obligations or defaulting on contracts. Operational risk is the risk of internal processes, systems, or people failing to perform efficiently or effectively. Strategic risk is when business objectives, strategies, or plans are not aligned with market conditions, customer needs, or regulatory requirements. Lastly, legal risk is the possibility of facing legal actions, penalties, or disputes due to insurance products or services, or violating laws or regulations in different jurisdictions.

添加您的观点

3 Evaluate your insurance risks

The third step to manage insurance risks is to evaluate them. You can use various tools, such as risk matrices, indicators, or models, to measure the likelihood and impact of your insurance risks. This will help prioritize your insurance risks and allocate resources accordingly. When evaluating your insurance risks, consider the frequency and severity of the risks, the controllability and predictability of them, the correlation and diversification of the risks, and the tolerance and appetite of them. All these factors play a role in understanding your insurance risks.

添加您的观点

Lucas Engl

Finance and Cybersecurity Expert || Managing Risk as Specialty Insurance Underwriter for Cyber & Technology || MSc-Finance, CAS-Cybersecurity, CS50;
举报内容
Evaluate cyber insurance risk by: ?Using risk scores to rate how likely and severe cyber threats might be based on past data and industry trends. ?Well defined "Red Flags" help to keep an eye on warning signs that signal potential cyber threats. ?Estimating the impact of potential cyber threats by thinking through various attack scenarios can also help. ?By relying on maps that show which cyber risks are most worrying based on how likely and damaging they are, insurers can gain an edge. ?Learning from previous cyber incidents to spot patterns and understand typical weak spots is key. ?Special Cyber Risk Tools designed to help understand and manage cyber insurance risks effectively can also be used to support underwriting decisions.

已翻译

赞

4 Mitigate your insurance risks

The fourth step to manage insurance risks is to mitigate them. You can use various techniques, including risk prevention, risk reduction, or risk control, to reduce the likelihood or impact of your insurance risks. For instance, you can avoid the sources of your insurance risks by not offering certain products or services, or exiting certain markets or segments. Additionally, you can reduce the exposure or consequences of your insurance risks by lowering premiums, increasing reserves, or improving underwriting and claims processes. Furthermore, you can monitor or manage your insurance risks by implementing policies, procedures, or standards; and conducting audits, reviews, or reports.

添加您的观点

5 Transfer your insurance risks

The fifth step to manage insurance risks is to transfer them. You can use different mechanisms, such as risk sharing, risk pooling, or risk transfer, to shift the responsibility or burden of your insurance risks to other parties. For example, you can share the costs or benefits of your insurance risks with other parties through partnerships, alliances, joint ventures, co-insurance or profit-sharing arrangements. Alternatively, you can pool your insurance risks with other parties by joining associations, cooperatives, mutuals, risk retention groups or captives. Lastly, you can transfer your insurance risks to other parties by buying reinsurance, insurance-linked securities, derivatives or outsourcing certain functions or activities. Risk transfer strategies can help inform and reassure stakeholders while providing valuable insights for improving your cloud security posture.

添加您的观点

Lucas Engl

Finance and Cybersecurity Expert || Managing Risk as Specialty Insurance Underwriter for Cyber & Technology || MSc-Finance, CAS-Cybersecurity, CS50;
举报内容
Reinsurance plays a pivotal role in transferring and diversifying an insurer's portfolio in several ways: ?Insurers can pass some risk to a reinsurer, protecting themselves from big losses due to major events like natural disasters. ? It also frees up cash that insurers would otherwise keep aside for emergencies, giving them more money to grow their business or offer more policies. ?Reinsurers spread risk among many insurers, so if one faces a huge loss, it doesn't cripple them entirely. ?When unexpected events happen, like widespread claims, reinsurance helps insurers stay financially stable. ?It helps insurers meet the rules set by regulators about how much money they need to have on hand to cover potential losses.

已翻译

赞

6 Review your insurance risks

The sixth step to manage insurance risks is to review them. You can use different methods, such as risk feedback, risk learning, or risk improvement, to assess the effectiveness and efficiency of your insurance risk management. For instance, you can collect and analyze data and information on your insurance risks with key performance indicators, benchmarks, or surveys. You can also seek feedback from stakeholders, customers, or regulators. Furthermore, you can learn from the experiences and lessons of your insurance risks by identifying strengths, weaknesses, opportunities, or threats of your insurance risk management. Additionally, you can share best practices, insights, or innovations with your staff, partners, or peers. Finally, you can improve your insurance risk management by adjusting your risk strategies, techniques, or tools or by implementing corrective actions, changes, or enhancements.

添加您的观点

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Mohamed Attia

Risk Management Expert | Credit Certified | Credit Scoring (CERM)
举报内容
Managing insurance risks in a global business involves creating a centralized program aligned with overall objectives. This includes tailoring coverage to address region-specific risks, complying with local regulations, and considering factors like political, economic, and cybersecurity risks. Implementing crisis management and business continuity plans, engaging experienced brokers and insurers, and regularly monitoring and adjusting the strategy contribute to an effective and adaptive global insurance risk management approach. The emphasis is on understanding and mitigating diverse risks across regions while ensuring compliance with local laws.

已翻译

赞

Insurance

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

How can you manage insurance risks in a global business?

1

2

3

4

5

6

7

1 Identify your insurance risks

2 Classify your insurance risks

3 Evaluate your insurance risks

4 Mitigate your insurance risks

5 Transfer your insurance risks

6 Review your insurance risks

7 Here’s what else to consider

Insurance

给文章评分

感谢您的反馈

更多Insurance相关文章

更多相关阅读内容