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Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
Protecting American Businesses from Risk - Zurich North America
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Protecting American Businesses from Risk - Zurich North America

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Zurich and the lead researcher for the Harvard Business Review held a live Web event for the media to discuss a new study, "Risk Management in a Time of Global Uncertainty" …

Zurich and the lead researcher for the Harvard Business Review held a live Web event for the media to discuss a new study, "Risk Management in a Time of Global Uncertainty"

On Jan. 20, 2012, Mike Foley, Mike Kerner and Angelia Herrin provided the results from a survey of approximately 1500 global business executives conducted by Harvard Business Review Analytic Services and sponsored by Zurich.

Published in: Business, Economy & Finance
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  • 1. Protecting American Businesses from RiskA revolutionary change to make C-suite thefirst line of defenseMedia Web eventJanuary 20, 2012, 10 to 11 a.m. EasternMike Foley CEO Zurich North America Commercial and Regional Chairman of the Americas for Zurich Financial ServicesAngelia Herrin Editor for Special Projects and Research for Harvard Business ReviewMike Kerner CEO Zurich Global Corporate North America 1
  • 2. Speakers & Agenda 10 a.m. Eastern: Moderator opens call 10:02: Mike Foley – Welcome, introduction of speakers and setting the stage 10:05: Angelia Herrin – Breakdown the data 10:20: Mike Kerner – Insights 10:25: Mike Foley – Insights and conclusion 10:30 a.m. to 11 a.m.: Questions from the press Mike Foley Angelia Herrin Mike Kerner ©2012 Zurich American Insurance Company. All rights reserved. 2
  • 3. Mike FoleyCEO Zurich North America Commercial andRegional Chairman of the America forZurich Financial Services 3
  • 4. Businesses need to proactively managerisks in a time of global uncertaintyNew survey, “Risk Management in a Time of Global Uncertainty”Conducted in collaboration with Harvard Business Review Analytic ServicesInterviews with 1,419 business executivesAdditionally in-depth interviews with a cross-section of executivesFindings reveal corporate leader’s believe their companies have a long wayto go in building an effective, risk aware cultureAnd the risk landscape keeps evolving . . . ©2012 Zurich American Insurance Company. All rights reserved. 4
  • 5. Top 5 Global Risks: LikelihoodSource: World Economic Forum 2012 5
  • 6. Angelia HerrinEditor for Special Projects and Research forHarvard Business Review 6
  • 7. Natural disaster and recession fears have changed risk perception Top 10 risks that have risen the most in significance in the last three years 7Source: HBRAS-Zurich survey “Risk Management in a Time of Global Uncertainty, p. 16
  • 8. Top ten risks that have risen in significance the most in the last 3 years – N AmericaQ16b. Which areas of risk have risen most significantly in importance during the past 3 years – Financial and Market risks? Base: All answering n=1,201Q17b. Which areas of risk have risen most significantly in importance during the past 3 years – Strategic and People risks? Base: All answering n=1,315Q18b. Which areas of risk have risen most significantly in importance during the past 3 years – Political risks? Base: All answering n=971Q19b. Which areas of risk have risen most significantly in importance during the past 3 years – Other? Base: All answering n=546 8
  • 9. Top ten risks that have risen in significance the most in the last 3 years - EuropeQ16b. Which areas of risk have risen most significantly in importance during the past 3 years – Financial and Market risks? Base: All answering n=1,201Q17b. Which areas of risk have risen most significantly in importance during the past 3 years – Strategic and People risks? Base: All answering n=1,315Q18b. Which areas of risk have risen most significantly in importance during the past 3 years – Political risks? Base: All answering n=971Q19b. Which areas of risk have risen most significantly in importance during the past 3 years – Other? Base: All answering n=546 9
  • 10. Top ten risks that have risen in significance the most in the last 3 years - AsiaQ16b. Which areas of risk have risen most significantly in importance during the past 3 years – Financial and Market risks? Base: All answering n=1,201Q17b. Which areas of risk have risen most significantly in importance during the past 3 years – Strategic and People risks? Base: All answering n=1,315Q18b. Which areas of risk have risen most significantly in importance during the past 3 years – Political risks? Base: All answering n=971Q19b. Which areas of risk have risen most significantly in importance during the past 3 years – Other? Base: All answering n=546 10
  • 11. What has changed: new risk reporting lines, direct link to company strategy Risk management process improvements over last three years 11Source: HBRAS-Zurich survey “Risk Management in a Time of Global Uncertainty, p. 13
  • 12. Who “owns” risk management today? CROs are far more likely to be in the drivers’ seat (Organizations that had seen changes in responsibility for risk)Q10. Which of the following job titles best describes the person with direct day-to-day responsibility for risk management three years ago? Base : Allthose saying designation of who is responsible for risk had changed in last 3 years n=285Q7. Which of the following job titles best describes the person with direct day-to-day responsibility for risk management in your organization? Base : 12All respondents with an identifiable person for managing risk n=749
  • 13. How companies analyse & manage risks that they face in the post-crash world Board level commitment to RM activity 30% of boardrooms’ commitment to risk initiatives are static or declining. Those most likely to say board has high commitment: •CRO/Risk Managers (Index 172) •Financial sector (152) •Organizations with 10,000+ staff (136) Most likely to say board is static: •IT/telecoms (135) •Organizations with <100 staff (135) 13Q.13 How would you describe your board’s commitment to risk management initiatives and processes? Base : All answering n=1,418
  • 14. Who “owns” risk management by company profiles Board of directors Split No one area responsible responsibility responsible All (ex others) <100 staff 40% (Index 142) 41% (69) 13% (186) 100-999 staff 26% (93) 65% (110) 4% (57) 1,000-9,999 25% (89) 62% (105) 6% (86) 10,000+ staff 20% (71) 70% (119) 5% (71) Asia 29% (103) 60% (102) 6% (86) Europe 41% (143) 50% (85) 4% (57) Mid East/Africa 33% (118) 55% (93) 7% (100) N America S/Cent America 32% (114) 57% (97) 5% (71) *Note does not add up to 100% - excludes other 14Q5. What area of the organization has specific strategic responsibility for risk management? Base : All answering n=1,411
  • 15. Seriously managing risks changes way of doing business Business benefits of enterprise risk management 15Source: HBRAS-Zurich survey “Risk Management in a Time of Global Uncertainty, p. 21
  • 16. IT security and business continuity top risk planning concerns Top 10 risk planning gaps Organizations with a CRO do more extensive advance planning than other companies in almost every major risk area 16Source: HBRAS survey “Risk Management in a Time of Global Uncertainty, p. 10
  • 17. The missing link of risk information to strategic decision making The gap between risk management activities: importance vs. performance 17Source: HBRAS-Zurich survey “Risk Management in a Time of Global Uncertainty, p. 8
  • 18. Focus shift to fundamental processes instead of compliance and management support Primary barriers to embedding enterprise risk management 18Source: HBRAS-Zurich survey “Risk Management in a Time of Global Uncertainty, p. 24
  • 19. Mike KernerCEO Zurich Global Corporate North America 19
  • 20. Mike FoleyCEO Zurich North America Commercial andRegional Chairman of the America forZurich Financial Services 20
  • 21. Insights and conclusion Companies must manage risk proactively Companies must look deeper and wider to determine what their most serious risks will be in the long run Risk Management and corporate goals must be integrated Risk Management needs to have a clear “owner” to be effective Companies must break down silos and managerial bottlenecks (focus on fundamental processes) ©2012 Zurich American Insurance Company. All rights reserved. 21
  • 22. Q&A Mike Foley Angelia Herrin Mike Kerner Watch the video archive of this event and download the slides at http://www.zurichna.com/media To learn about Zurich’s 100 year anniversary of insuring America, go to http://www.zurichna100.comThe information in this presentation was compiled from sources believed to be reliable for informational purposes only. Any and all informationcontained herein is not intended to constitute legal advice and accordingly, you should consult with your own attorneys when developing programsand policies. We do not guarantee the accuracy of this information or any results and further assume no liability in connection with this presentation,including any information or methods contained herein. ©2012 Zurich American Insurance Company. All rights reserved. 22
  • 23. Mike FoleyCEO Zurich North America Commercial andRegional Chairman of the America forZurich Financial Services 23
  • 24. Mike KernerCEO Zurich Global Corporate North America 24
  • 25. Angelia HerrinEditor for Special Projects and Research forHarvard Business Review 25

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