Re-assessing 21st century risk: 21st century trends in risk management-board level decisions set the agenda

摘要

There are a number of trends clearly detectable in the UK markets that have the potential to change radically the approach of major and medium sized companies to insurance, Although some of these have been caused by the substantial increases in premiums triggered by the recent hard market, there are clear signs that these trends are becoming institutionalized, and are thus likely to continue despite any subsequent softening of the market. This article will focus on four trends: (1) the move from risk transfer to risk mitigation; (2) the drift from asset protection to revenue protection; (3) the rise of behavioral risk management in both operational risk and decision risk; and (4) the acceptance of risk management as a core skill for any responsible board of directors.