The European Talk show for Risk and Insurance professionnals
Organisations are facing ever-more complex and systemic threats, from climate change to cyber threats brought about by digitalisation and increased connectivity. For me risk to resilience is about using data and science to be strategic about those organisational threats. By using data and science to identify and understand vulnerabilities, these risks can be managed and mitigated. This drives resilience and protects a business over the long term.
You must start with the right mindset. If you accept that disruption is going to happen you can plan and prepare for it. You might not know exactly what is coming but you can map out potential vulnerabilities based on data and research and make your organisation resilient to those threats.
While few organisations could have anticipated the exact nature of the pandemic – or may not be able to predict the next Black Swan event – those organisations that had prepared for supply chain disruption or building closure were better equipped to handle the last 22 months. Preparation allows you to choose resilience.
The pandemic has proven the value of resilience and the difference risk management can make. As a consequence, the risk professional has never had a bigger voice or played a more critical role in their organisations. Having good data is crucial for gaining traction with the board and ensuring that they play a strategic role.
At FM Global, we believe that the majority of loss is preventable, but where a loss does occur this is where appropriate risk transfer solutions can play a role. With organisations facing systemic risks like climate change and cyber threats, the principles of data and engineering-based risk management will be vital. It’s the only way that risk professionals can ensure that resources are focused on where they’re needed most.