Mairin Madrid | May 17, 2018
The Pan-Asia Risk and Insurance Management Association (PARIMA) held its Marsh-Lloyd’s Risk Conversation forum in Bonifacio Global City last May 10, welcoming 96 delegates of whom 23 are risk practitioners from the Aboitiz Group. Discussions focused on significant findings of on global risk, city risk, and digitalization and their impact on the current approach to risk management.
AboitizPower’s Chris Sangster, Executive Director for Project Development and Execution, took part in a panel to exchange insights on the top risks faced by the Aboitiz Group and the importance of developing a strong risk culture within the organization. Asked which risk he believes risk managers should be most concerned, Chris shared that cyber risks and how to counter them are still the greatest concerns being raised, while natural catastrophe is the biggest threat to assets in the Philippines.
Meanwhile, Wolfram Hedrich, Executive Director of Marsh’s Risk Center, presented the “World Economic Forum 2018 Global Risk Report”, which highlighted an unstable and fragile world, characterized by the convergence of far-reaching technological disruptions and seismic shifts in the geopolitical agenda, with economic uncertainty hovering on the horizon.
- We should increase our focus from familiar risks to emerging risks.
- We should start seeing the interconnectedness of risks (avoid looking at risks in silos)
- We should view the increasingly complex world of global risks through future shocks, and pay more attention to cognitive bias in risk assessment process.
Lloyd’s APAC CEO, Kent Chaplin, talked about the City Risk Index results for Manila, which can be found in the “Lloyd’s City Risk Index 2015-2025” report. The potential impact on the economic output of 301 of the world’s major cities from 18 man-made and natural threats was examined.
- Assessing financial impact, measuring, and modeling are first key steps to building resilience.
- Achieving a very strong resilience rating would reduce Manila’s GDP at risk by almost $4Bn.
- Among the greatest risks for Manila are natural threats, geopolitical risks, and security risks.
Lastly, Douglas Ure of Marsh Asia discussed the importance of leveraging data, analytics, and processes in order to bring risk management practices forward as reported in “Targeting a Technology Dividend in Risk Management” report from Marsh and PARIMA.
- The technology agenda in risk functions requires urgent significant attention.
- The 3 major emerging tech drivers that will drive productivity within risk function are data, analytics, and process automation/standardization for efficiency.
- There is still low adoption in predictive modelling and data engineering.
- In the next 5 years, talents to be heavily deployed in risk are data scientists, data miners, etc.
- Emerging technologies can be instrumental in preventing supply chain disruptions.