As risk events unfold at varying speeds and complexities, organizations can get blindsided by prior experience, confirmation bias, or simply by not seeing risks. The ability of businesses to expect the unexpected, accurately assess their potential impacts, and implement effective mitigation measures has never been more key to achieving resilience.
Some risk managers rely on benchmarking when making important insurance program design decisions. However, benchmarking has its shortcomings, particularly as every business has different levels of risk exposures and risk tolerance, which may not align to their business strategies.
Furthermore, with rising insurance costs and complexity, business stakeholders and senior management are applying greater scrutiny to the performance of their insurance programs. Risk managers are therefore increasingly challenged to provide quantifiable support for their insurance and risk decision making.
Why Risk Finance Optimization?
With emerging, complex and rapidly evolving challenges, you need more than a historical view to manage risk, allocate capital and achieve results.
A robust approach to designing and optimizing your risk management strategy is to perform a Risk Finance Optimization (RFO). This is a tailored data-driven exercise which answers program structure queries and identifies the most economically efficient means to finance your risks.