Building A Resilient Risk Culture

Recently our GCEO, Mr Douglas Hoto, made a presentation at the African Insurance Forum on building a resilient risk culture. Here are the highlights!

The first step in analysing risk in our culture is to do a VUCA analysis. Volatility, Uncertainty, Complexity and Ambiguity. From extreme weather events, cyber risks, wars and pandemics, we need to be able to navigate the risk culture through vision, mastery, clarity and agility.?

When building a resilient risk culture, the are different levels where risk can be analysed.?

At institution level?

Governance:?

• Form a Group Risk Committee
• Board members trained on risk management

Staff:

• CRO report at each Board meeting
• Risk Champions in each SBU
• Change management-digitisation project

A Feedback mechanism?

• Exploratory research
• Year customer survey
• Tip-offs anonymous, Innovation Committee

Other?:

• Embracing ESG for reporting
• Actuarial Control Cycle?
• Capital management

At Country Level?

Government:?

• Promote (and incentivise) public and private insurance schemes
• Consider mandatory insurance?

Regulators:?

• Provide a supportive legal framework and effective oversight over the insurance industry
• Promote financial inclusion?
• Zicarp-Zimbabwe

Community:?

• Raise awareness of sound risk management practices among the vulnerable communities
• Financial Inclusion Strategy-Reserve Bank of Zimbabwe?

At Continental Level?

• Harmonisation of insurance regulations in the African Continent?
• Risk Pools at a continental level for complex and mega risks. Organisations such as African Insurance Organization (AIO) African Risk Capacity (ARC) play a major in establishing risk pools
• Exploiting opportunities in the African Continental Free Trade Area (AfCFTA)

What would you add to this thread on how to build a resilient risk culture?

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