Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade (126 Respondents)

1. Benchmark Report for: Industry Grouping -
Retail Trade/ Wholesale Trade
Global Risk
Management Survey

2. Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade (126 Respondents)
General Information
1: Please select the main industry sector that applies to your organization.
Retail Trade/ Wholesale Trade Overall
Agribusiness 0% 2%
Aviation 0% 2%
Banks 0% 4%
Beverages 0% 0%
Chemicals 0% 4%
Conglomerate 0% 1%
Construction 0% 8%
Consumer Goods Manufacturing 0% 4%
Educational and Nonprofits 0% 4%
Food Processing and Distribution 0% 3%
Government 0% 2%
Health Care 0% 5%
Hotels and Hospitality 0% 1%
Insurance, Investment and Finance 0% 7%
Lumber, Furniture, Paper, and Packaging 0% 2%
Machinery and Equipment Manufacturers 0% 4%
Metal Milling and Manufacturing 0% 3%
Natural Resources (Oil, Gas and Mining) 0% 4%
Non-Aviation Transportation Manufacturing 0% 2%
Non-Aviation Transportation Services 0% 4%
Pharmaceuticals and Biotechnology 0% 3%
Printing and Publishing 0% 1%
Professional and Personal Services 0% 5%
Real Estate 0% 3%
Restaurants 0% 1%
Retail Trade 63% 6%
Rubber, Plastics, Stone and Cement 0% 2%
Technology 0% 3%
Telecommunications and Broadcasting 0% 2%
Textiles 0% 0%
Utilities 0% 4%
Wholesale Trade 37% 3%
2: What is the home region of your organization?
Retail Trade/ Wholesale Trade Overall
North America 33% 33%
Europe 51% 46%
Asia Pacific 3% 9%
Latin America 11% 11%
Middle East & Africa 2% 1%
3: Which company type most applies to your organization?
Retail Trade/ Wholesale Trade Overall
Public 39% 35%
Private 57% 52%
Government/Government owned corporation 1% 5%
Not for Profit 0% 6%
Other 3% 2%
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 2 GRMS (2015) - Aon Risk Solutions

3. 4: What is your current employee count?
Retail Trade/ Wholesale Trade Overall
0 - 249 27% 23%
250 - 499 5% 8%
500 - 2,499 13% 23%
2,500 - 4,999 6% 12%
5,000 - 14,999 16% 16%
15,000 - 49,999 16% 11%
50,000 + 17% 8%
5: What is your total annual revenue (turnover) for the most recent financial period? (Total Annual Revenue in US Dollars)
Retail Trade/ Wholesale Trade Overall
USD 0 - USD 99M 17% 23%
USD 100M - USD 249M 10% 11%
USD 250M - USD 499M 10% 10%
USD 500M - USD 999M 7% 9%
USD 1BN - USD 1.9BN 6% 8%
USD 2BN - USD 2.9BN 8% 6%
USD 3BN - USD 3.9BN 5% 3%
USD 4BN - USD 4.9BN 2% 3%
USD 5BN - USD 9.9BN 11% 7%
USD 10BN - USD 14.9BN 7% 3%
USD 15BN - USD 19.9BN 2% 1%
USD 20BN - USD 24.9BN 2% 2%
USD 25BN + 10% 4%
Cannot Disclose 4% 6%
6: In how many countries does your organization operate?
Retail Trade/ Wholesale Trade Overall
1 30% 35%
2 - 5 29% 20%
6 - 10 13% 11%
11 - 15 3% 5%
16 - 25 8% 7%
26 - 50 10% 10%
50+ 6% 11%
7: What is the role of the person who is providing the majority of the survey answers?
Retail Trade/ Wholesale Trade Overall
Chief Executive 2% 6%
President 0% 2%
Chief Financial Officer 16% 12%
Treasurer 2% 3%
Company Secretary 1% 1%
Chief Operations Officer 1% 1%
Chief Administration Officer 2% 1%
Chief Risk Officer 5% 8%
Chief Counsel /Head of Legal 3% 3%
Head of Human Resources 1% 1%
Managing Director/Partner 2% 1%
Risk Manager or Insurance Manager 42% 38%
Risk Consultant 2% 2%
Finance Manager 4% 5%
General Business Manager 2% 2%
Other 15% 14%
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 3 GRMS (2015) - Aon Risk Solutions

4. Key Risk Issues
8.1: Please review the following risk issues and indicate the TEN KEY RISKS for your organization (No other ranking or prioritization required).
Retail Trade/ Wholesale Trade Overall
Corporate - Corporate social responsibility/sustainability 26 22
Corporate - Damage to reputation/brand 2 Most Frequently Selected 1 Most Frequently Selected
Corporate - Directors & Officers personal liability 21 20
Corporate - Failure to innovate/meet customer needs 6 Most Frequently Selected 6 Most Frequently Selected
Corporate - Growing burden and consequences of corporate
governance/compliance
29 16
Corporate - Loss of intellectual property/data 27 25
Corporate - Failure to implement or communicate strategy 19 26
Corporate - Outsourcing 43 Least Frequently Selected 38
Corporate - Merger/acquisition/restructuring 35 28
Corporate - Joint venture failure 49 Least Frequently Selected 48 Least Frequently Selected
Crime/Security - Terrorism/sabotage 41 41
Crime/Security - Kidnap and ransom/extortion 43 Least Frequently Selected 52 Least Frequently Selected
Crime/Security - Crime/theft/fraud/employee dishonesty 13 24
External Factors - Climate change 45 Least Frequently Selected 45 Least Frequently Selected
External Factors - Commodity price risk 12 11
External Factors - Economic slowdown/slow recovery 3 Most Frequently Selected 2 Most Frequently Selected
External Factors - Globalization/emerging markets 38 36
External Factors - Increasing competition 1 Most Frequently Selected 4 Most Frequently Selected
External Factors - Natural resource scarcity/availability of raw materials 37 40
External Factors - Pandemic risk/health crises 52 Least Frequently Selected 44 Least Frequently Selected
External Factors - Political risk/uncertainties 21 15
External Factors - Regulatory/legislative changes 7 Most Frequently Selected 3 Most Frequently Selected
External Factors - Social media 30 46 Least Frequently Selected
External Factors - Sovereign debt 49 Least Frequently Selected 51 Least Frequently Selected
External Factors - Weather/natural disasters 16 18
External Factors - Accelerated rates of change in market factors and
geopolitical risk environment
31 34
Financial - Asset value volatility 40 42
Financial - Capital availability/credit risk 24 19
Financial - Cash flow/liquidity risk 23 12
Financial - Counter party credit risk 16 27
Financial - Exchange rate fluctuation 14 17
Financial - Interest rate fluctuation 45 Least Frequently Selected 37
Financial - Pension scheme funding 49 Least Frequently Selected 50 Least Frequently Selected
Financial - Share price volatility 41 49 Least Frequently Selected
Human Capital - Absenteeism 45 Least Frequently Selected 47 Least Frequently Selected
Human Capital - Failure to attract or retain top talent 8 Most Frequently Selected 5 Most Frequently Selected
Human Capital - Harassment/discrimination 52 Least Frequently Selected 53 Least Frequently Selected
Human Capital - Inadequate succession planning 31 30
Human Capital - Injury to workers 18 23
Human Capital - Understaffing 45 Least Frequently Selected 43
Human Capital - Unethical behavior 38 38
Human Capital - Workforce shortage 34 32
Human Capital - Aging workforce and related health issues 31 35
IT - Computer crime/hacking/viruses/malicious codes 4 Most Frequently Selected 9 Most Frequently Selected
IT - Lack of technology infrastructure to support business needs 27 31
IT - Technology failure/system failure 9 Most Frequently Selected 13
Operational - Business interruption 10 Most Frequently Selected 7 Most Frequently Selected
Operational - Distribution or supply chain failure 5 Most Frequently Selected 14
Operational - Environmental risk 36 29
Operational - Failure of disaster recovery plan/business continuity plan 24 21
Operational - Property damage 11 10 Most Frequently Selected
Operational - Product recall 19 33
Operational - Third party liability 15 8 Most Frequently Selected
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 4 GRMS (2015) - Aon Risk Solutions

5. 8.2: For each of the ten key risks identified for your organization, please tick whether a plan is in place or a formal review has been undertaken.
Retail Trade/ Wholesale Trade Overall
Corporate - Corporate social responsibility/sustainability 86% 69%
Corporate - Damage to reputation/brand 64% 56%
Corporate - Directors & Officers personal liability 60% 69%
Corporate - Failure to innovate/meet customer needs 71% 60%
Corporate - Growing burden and consequences of corporate
governance/compliance
83% 58%
Corporate - Loss of intellectual property/data 80% 62%
Corporate - Failure to implement or communicate strategy 73% 56%
Corporate - Outsourcing 60% 62%
Corporate - Merger/acquisition/restructuring 75% 62%
Corporate - Joint venture failure 33% 50%
Crime/Security - Terrorism/sabotage 50% 68%
Crime/Security - Kidnap and ransom/extortion 60% 59%
Crime/Security - Crime/theft/fraud/employee dishonesty 76% 69%
External Factors - Climate change 25% 32%
External Factors - Commodity price risk 50% 53%
External Factors - Economic slowdown/slow recovery 40% 39%
External Factors - Globalization/emerging markets 25% 44%
External Factors - Increasing competition 56% 49%
External Factors - Natural resource scarcity/availability of raw materials 30% 51%
External Factors - Pandemic risk/health crises 100% 69%
External Factors - Political risk/uncertainties 36% 39%
External Factors - Regulatory/legislative changes 38% 53%
External Factors - Social media 69% 52%
External Factors - Sovereign debt 0% 46%
External Factors - Weather/natural disasters 69% 56%
External Factors - Accelerated rates of change in market factors and
geopolitical risk environment
33% 44%
Financial - Asset value volatility 43% 53%
Financial - Capital availability/credit risk 64% 68%
Financial - Cash flow/liquidity risk 62% 71%
Financial - Counter party credit risk 62% 76%
Financial - Exchange rate fluctuation 66% 68%
Financial - Interest rate fluctuation 50% 66%
Financial - Pension scheme funding 100% 82%
Financial - Share price volatility 50% 55%
Human Capital - Absenteeism 25% 57%
Human Capital - Failure to attract or retain top talent 60% 60%
Human Capital - Harassment/discrimination 100% 63%
Human Capital - Inadequate succession planning 53% 51%
Human Capital - Injury to workers 86% 86%
Human Capital - Understaffing 25% 46%
Human Capital - Unethical behavior 62% 68%
Human Capital - Workforce shortage 23% 46%
Human Capital - Aging workforce and related health issues 47% 54%
IT - Computer crime/hacking/viruses/malicious codes 82% 82%
IT - Lack of technology infrastructure to support business needs 65% 71%
IT - Technology failure/system failure 89% 84%
Operational - Business interruption 65% 73%
Operational - Distribution or supply chain failure 57% 63%
Operational - Environmental risk 64% 74%
Operational - Failure of disaster recovery plan/business continuity plan 82% 68%
Operational - Property damage 68% 81%
Operational - Product recall 58% 66%
Operational - Third party liability 74% 73%
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 5 GRMS (2015) - Aon Risk Solutions

6. 8.3: For each of the ten key risks identified for your organization, please tick those that have resulted in a loss of income in the past 12 months.
Retail Trade/ Wholesale Trade Overall
Corporate - Corporate social responsibility/sustainability 0% 3%
Corporate - Damage to reputation/brand 3% 7%
Corporate - Directors & Officers personal liability 12% 5%
Corporate - Failure to innovate/meet customer needs 38% 25%
Corporate - Growing burden and consequences of corporate
governance/compliance
28% 21%
Corporate - Loss of intellectual property/data 5% 7%
Corporate - Failure to implement or communicate strategy 19% 19%
Corporate - Outsourcing 40% 20%
Corporate - Merger/acquisition/restructuring 17% 11%
Corporate - Joint venture failure 0% 18%
Crime/Security - Terrorism/sabotage 0% 4%
Crime/Security - Kidnap and ransom/extortion 0% 0%
Crime/Security - Crime/theft/fraud/employee dishonesty 70% 45%
External Factors - Climate change 25% 20%
External Factors - Commodity price risk 36% 40%
External Factors - Economic slowdown/slow recovery 51% 46%
External Factors - Globalization/emerging markets 12% 14%
External Factors - Increasing competition 53% 49%
External Factors - Natural resource scarcity/availability of raw 20% 22%
External Factors - Pandemic risk/health crises 0% 10%
External Factors - Political risk/uncertainties 28% 34%
External Factors - Regulatory/legislative changes 21% 28%
External Factors - Social media 6% 7%
External Factors - Sovereign debt 0% 18%
External Factors - Weather/natural disasters 52% 35%
External Factors - Accelerated rates of change in market factors and
geopolitical risk environment
27% 25%
Financial - Asset value volatility 14% 23%
Financial - Capital availability/credit risk 14% 15%
Financial - Cash flow/liquidity risk 38% 20%
Financial - Counter party credit risk 55% 39%
Financial - Exchange rate fluctuation 44% 42%
Financial - Interest rate fluctuation 25% 18%
Financial - Pension scheme funding 33% 27%
Financial - Share price volatility 17% 23%
Human Capital - Absenteeism 50% 41%
Human Capital - Failure to attract or retain top talent 13% 18%
Human Capital - Harassment/discrimination 50% 26%
Human Capital - Inadequate succession planning 13% 5%
Human Capital - Injury to workers 54% 34%
Human Capital - Understaffing 25% 25%
Human Capital - Unethical behavior 38% 22%
Human Capital - Workforce shortage 8% 24%
Human Capital - Ageing workforce and related health issues 27% 21%
IT - Computer crime/hacking/viruses/malicious codes 4% 8%
IT - Lack of technology infrastructure to support business needs 60% 25%
IT - Technology failure/system failure 16% 17%
Operational - Business interruption 18% 22%
Operational - Distribution or supply chain failure 22% 20%
Operational - Environmental risk 27% 13%
Operational - Failure of disaster recovery plan/business continuity plan 0% 4%
Operational - Property damage 37% 36%
Operational - Product recall 31% 27%
Operational - Third party liability 35% 30%
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 6 GRMS (2015) - Aon Risk Solutions

7. 8.4: Please indicate what you perceive the TOP FIVE KEY RISKS to your organization will be three (3) years from now (No other ranking or prioritization required)
Retail Trade/ Wholesale Trade Overall
Corporate - Corporate social responsibility/sustainability 22 20
Corporate - Damage to reputation/brand 4 Most Frequently Selected 5 Most Frequently Selected
Corporate - Directors & Officers personal liability 24 34
Corporate - Failure to innovate/meet customer needs 5 Most Frequently Selected 4 Most Frequently Selected
Corporate - Growing burden and consequences of corporate
governance/compliance
22 10 Most Frequently Selected
Corporate - Loss of intellectual property/data 40 28
Corporate - Failure to implement or communicate strategy 14 17
Corporate - Outsourcing 40 39
Corporate - Merger/acquisition/restructuring 27 13
Corporate - Joint venture failure 45 Least Frequently Selected 44 Least Frequently Selected
Crime/Security - Terrorism/sabotage 43 Least Frequently Selected 42
Crime/Security - Kidnap and ransom/extortion 45 Least Frequently Selected 52 Least Frequently Selected
Crime/Security - Crime/theft/fraud/employee dishonesty 14 31
External Factors - Climate change 32 38
External Factors - Commodity price risk 9 Most Frequently Selected 8 Most Frequently Selected
External Factors - Economic slowdown/slow recovery 2 Most Frequently Selected 2 Most Frequently Selected
External Factors - Globalization/emerging markets 34 27
External Factors - Increasing competition 1 Most Frequently Selected 1 Most Frequently Selected
External Factors - Natural resource scarcity/availability of raw 34 40
External Factors - Pandemic risk/health crises 45 Least Frequently Selected 43
External Factors - Political risk/uncertainties 12 9 Most Frequently Selected
External Factors - Regulatory/legislative changes 9 Most Frequently Selected 3 Most Frequently Selected
External Factors - Social media 30 46 Least Frequently Selected
External Factors - Sovereign debt 51 Least Frequently Selected 48 Least Frequently Selected
External Factors - Weather/natural disasters 24 22
External Factors - Accelerated rates of change in market factors and
geopolitical risk environment
30 28
Financial - Asset value volatility 45 Least Frequently Selected 45 Least Frequently Selected
Financial - Capital availability/credit risk 18 18
Financial - Cash flow/liquidity risk 18 13
Financial - Counter party credit risk 16 23
Financial - Exchange rate fluctuation 6 Most Frequently Selected 15
Financial - Interest rate fluctuation 38 37
Financial - Pension scheme funding 45 Least Frequently Selected 51 Least Frequently Selected
Financial - Share price volatility 45 Least Frequently Selected 49 Least Frequently Selected
Human Capital - Absenteeism 43 Least Frequently Selected 50 Least Frequently Selected
Human Capital - Failure to attract or retain top talent 8 Most Frequently Selected 6 Most Frequently Selected
Human Capital - Harassment/discrimination 51 Least Frequently Selected 53 Least Frequently Selected
Human Capital - Inadequate succession planning 24 32
Human Capital - Injury to workers 27 30
Human Capital - Understaffing 40 41
Human Capital - Unethical behavior 51 Least Frequently Selected 47 Least Frequently Selected
Human Capital - Workforce shortage 38 24
Human Capital - Ageing workforce and related health issues 18 25
IT - Computer crime/hacking/viruses/malicious codes 3 Most Frequently Selected 7 Most Frequently Selected
IT - Lack of technology infrastructure to support business needs 18 26
IT - Technology failure/system failure 9 Most Frequently Selected 20
Operational - Business interruption 12 12
Operational - Distribution or supply chain failure 6 Most Frequently Selected 19
Operational - Environmental risk 34 35
Operational - Failure of disaster recovery plan/business continuity plan 32 33
Operational - Property damage 27 16
Operational - Product recall 34 35
Operational - Third party liability 16 11
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 7 GRMS (2015) - Aon Risk Solutions

8. Major Risk Assessment
9: What is the primary method(s) you use to IDENTIFY the major risks facing your organization?
Retail Trade/ Wholesale Trade Overall
Structured enterprise-wide risk identification process 40% 46%
Board and/or management discussion of risk during annual planning, risk
assessment or other processes
49% 63%
Senior management judgement and experience 63% 62%
Risk information from other function-led processes (e.g. internal audit,
disclosure, compliance, etc.)
47% 54%
Industry analysis, external reports 34% 36%
Other 2% 3%
10: What is the primary method(s) you use to ASSESS the likelihood and potential impact of major risks?
Retail Trade/ Wholesale Trade Overall
Structured enterprise-wide risk assessment process supported by a
standard toolkit and methodology
34% 40%
Board and/or management discussion of risk during annual planning, risk
assessment or other processes
48% 56%
Senior management judgement and experience 63% 65%
Risk modeling / risk quantification analysis 23% 34%
Consult with external service provider/advisor 24% 32%
Other 1% 2%
11: How well do you feel your organization is prepared to identify, assess and manage current and emerging risks facing your organization? (Please rate on a 1 to 10 scale, 10 being the
most prepared)
Retail Trade/ Wholesale Trade Overall
1 1% 1%
2 2% 1%
3 3% 3%
4 6% 5%
5 11% 10%
6 14% 14%
7 32% 32%
8 26% 25%
9 4% 7%
10 1% 2%
12: What is the primary method(s) your organization uses to determine what limits of insurance should be purchased?
Retail Trade/ Wholesale Trade Overall
Benchmark against peers 43% 47%
Industry claims data/large losses 33% 32%
Risk Modelling 28% 27%
Cost benefit analysis premium cost vs. limits purchased 46% 49%
Scenario analysis 28% 28%
Management judgement and experience 50% 59%
Rely on broker or independent consultant 53% 57%
Other 1% 3%
13: Which of the following elements of Total Cost of Insurable Risk do you measure?
Retail Trade/ Wholesale Trade Overall
Risk transfer costs (e.g. insurance premiums) 76% 77%
Risk retention costs (e.g. actual or expected retained losses funded within
deductibles or self insurance vehicles such as a captive)
54% 55%
External risk management costs (e.g. professional fees paid to third parties
for services related to risk management)
45% 37%
Internal risk management costs (e.g. internal expenses for all employees
involved in the risk management and insurance function)
29% 28%
We are not measuring any of these elements of Total Cost of Insurable Risk 16% 16%
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 8 GRMS (2015) - Aon Risk Solutions

9. 14: Have you completed a formal cyber risk assessment?
Retail Trade/ Wholesale Trade Overall
Yes 46% 42%
No 54% 58%
15: Have you experienced changes in your risk profile due to an ageing workforce?
Retail Trade/ Wholesale Trade Overall
Yes 24% 28%
No 76% 72%
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 9 GRMS (2015) - Aon Risk Solutions

10. Approach to Risk Management and Board Involvement
16: In the past two years, what have been the most important external drivers to strengthen risk management in your organization?
Retail Trade/ Wholesale Trade Overall
Increased focus from regulators 30% 38%
Economic volatility 39% 37%
Political uncertainty 11% 15%
Natural weather events 19% 17%
Demand from investors for greater disclosure and accountability 15% 20%
Pressure from customers 27% 26%
Pressure from competitors 27% 21%
Exposure from suppliers/vendors 17% 15%
Workforce issues 23% 15%
Large third party liability losses/litigation 18% 18%
Risk events/black swan events 14% 18%
Cyber threat environment 39% 22%
Random acts of violence 3% 2%
Globalization 8% 11%
Other 8% 8%
17: Has your Board of Directors or a Board Committee established policies on risk oversight and management?
Retail Trade/ Wholesale Trade Overall
Yes, formally 29% 43%
No 14% 16%
Partially/informally 40% 31%
Don't know 14% 8%
18: What methods do you utilize to evaluate the effectiveness of your risk management program?
Retail Trade/ Wholesale Trade Overall
Do not measure effectiveness 26% 29%
Lower Total Cost of Risk 43% 32%
Compare historical results from risk events against effectiveness of risk
management programs
33% 36%
Compare historical results of safety and loss control programs (i.e.
decreasing losses, faster return-to-work)
33% 31%
Identify/track involvement of risk management within organization 29% 34%
Evaluate opportunity cost associated with business investments that would
not have been possible without risk management
12% 12%
Identify income generated or other financial/strategic benefits associated
with a company captive
8% 9%
Other 7% 5%
19: To what extent do you feel your risk management programs assist your organization in establishing and delivering on your business objectives? (Please rate on a 1 to 5 scale, 5
being the highest)
Retail Trade/ Wholesale Trade Overall
1 8% 6%
2 12% 14%
3 45% 39%
4 26% 34%
5 9% 8%
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 10 GRMS (2015) - Aon Risk Solutions

11. Risk Management Department/Function
20: Does your organization have a Chief Risk Officer (CRO)?
Retail Trade/ Wholesale Trade Overall
Yes, but this role does not include insurance risk management 8% 11%
Yes, and this role includes insurance risk management 13% 17%
No, but we are considering creating this position 9% 8%
No, and we do not plan to create such a position 67% 59%
Don't know 3% 5%
21: Does you organization have a formal risk management/insurance department/function? (If you answer Yes, you will be taken to Q23)
Retail Trade/ Wholesale Trade Overall
Yes 69% 71%
No 31% 29%
22: Who handles risk management responsibilities? (You will now be taken to the next section)
Retail Trade/ Wholesale Trade Overall
Chief Executive, President 22% 26%
Chief Financial Officer 38% 33%
Treasurer 3% 5%
Legal 8% 4%
Human Resources 0% 2%
Safety/Security 5% 2%
Internal Audit 0% 4%
Risk Committee 3% 4%
Other 22% 20%
23: Where does risk management report in your organization?
Retail Trade/ Wholesale Trade Overall
Finance/Treasury/Chief Financial Officer 68% 49%
Company Secretary 0% 2%
General Counsel/Legal 9% 11%
Chief Risk Officer (CRO) 2% 8%
Chief Executive, President 9% 13%
Human Resources 1% 2%
Safety/Security 1% 1%
Internal Audit 0% 2%
Chief Administrative Officer 2% 2%
Controller 0% 2%
Other 7% 8%
24: What is the total number of people in your risk management/insurance department/function?
Retail Trade/ Wholesale Trade Overall
1-2 36% 45%
3-5 36% 31%
6-8 10% 8%
9-11 5% 5%
12-15 0% 3%
16-20 5% 2%
21-25 1% 1%
26-30 4% 1%
31-35 0% 0%
36-40 0% 0%
41+ 4% 3%
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 11 GRMS (2015) - Aon Risk Solutions

12. 25: How involved is the Risk function in the following employee benefits management issues?
25.1: Benefits design
Retail Trade/ Wholesale Trade Overall
Not involved 65% 58%
Interested party with other functions 20% 19%
Stakeholder (involved in decisions) with other functions 10% 13%
Decision maker / authorization 4% 5%
Don't know 1% 5%
25.2: Financing & funding (pooling, captives)
Retail Trade/ Wholesale Trade Overall
Not involved 32% 35%
Interested party with other functions 22% 21%
Stakeholder (involved in decisions) with other functions 23% 20%
Decision maker / authorization 20% 19%
Don't know 2% 5%
25.3: Delivery & administration
Retail Trade/ Wholesale Trade Overall
Not involved 32% 33%
Interested party with other functions 26% 24%
Stakeholder (involved in decisions) with other functions 16% 18%
Decision maker / authorization 26% 19%
Don't know 0% 5%
25.4: Governance & compliance
Retail Trade/ Wholesale Trade Overall
Not involved 36% 30%
Interested party with other functions 31% 28%
Stakeholder (involved in decisions) with other functions 20% 26%
Decision maker / authorization 12% 11%
Don't know 1% 4%
26: Does your organization plan to increase their focus on risk management with additional spend/resources on programs over the next 12 months?
Retail Trade/ Wholesale Trade Overall
No, decrease 7% 3%
No, stay the same 44% 44%
Unsure 21% 21%
Yes, marginally 25% 25%
Yes, significantly 2% 7%
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 12 GRMS (2015) - Aon Risk Solutions

13. Insurance Market
27: How important are the following to you in your choice of insurers? (Rank in order the following options from 1-10 with 1 being the most important. You may use each numeric choice
only once)
Retail Trade/ Wholesale Trade Overall
Ability to execute and deliver risk finance support proximate to global
locations
10 9
Capacity 6 5
Claims service & settlement 3 2
Coverage Terms and Conditions 1 1
Financial stability/rating 4 4
Flexibility/innovation/creativity 8 8
Industry experience 7 6
Long-term relationship 5 7
Speed and quality of documentation 9 10
Value for money / price 2 3
29: What changes would you like to see in the insurance market?
Retail Trade/ Wholesale Trade Overall
Broader coverage / better terms and conditions 62% 64%
Recognition of investments in internal risk management efforts through
lower premiums
50% 50%
Increased capacity 21% 22%
More flexibility (i.e. underwriting, coverages, pricing) 65% 65%
More sophisticated claims information technology (IT) systems 36% 31%
Streamline/innovate underwriting process 31% 30%
Improved documentation accuracy and timeliness (policy issuances and
endorsement processing)
39% 37%
More product innovation 30% 32%
More globally compliant and consistent coverage across multinational
programs
20% 29%
Other 1% 4%
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 13 GRMS (2015) - Aon Risk Solutions

14. Risk Financing
30a: Please indicate the total limit purchased for Directors & Officers Liability insurance. (Please convert limits to US Dollar amount and enter full number.)
Retail Trade/ Wholesale Trade Overall
Minimum 100,000 50,000
Mean 72,196,949 60,059,122
Mode N/A 10,000,000
Maximum 625,000,000 1,129,000,000
30b: Please indicate the total limit purchased for Umbrella/Excess Liability insurance. (Please convert limits to US Dollar amount and enter full number.)
Retail Trade/ Wholesale Trade Overall
Minimum 100,000 50,000
Mean 114,657,033 111,596,700
Mode N/A 100,000,000
Maximum 700,000,000 1,500,000,000
31: Please indicate how the deductibles/retentions for your current programs have changed compared to the prior year: (Consider only the retention for any one loss. If multiple
retentions apply, choose the one most reflective of your overall program.)
31.1: Workers Compensation / Employers Liability
Retail Trade/ Wholesale Trade Overall
Higher 9% 11%
Lower 3% 3%
Same 88% 86%
31.2: General Liability / Public Liability
Retail Trade/ Wholesale Trade Overall
Higher 14% 12%
Lower 4% 4%
Same 82% 84%
31.3: Products Liability (if separate)
Retail Trade/ Wholesale Trade Overall
Higher 9% 9%
Lower 5% 4%
Same 85% 87%
31.4: Auto / Motor Vehicle Liability (not Physical Damage)
Retail Trade/ Wholesale Trade Overall
Higher 7% 8%
Lower 4% 5%
Same 89% 86%
31.5: Directors & Officers Liability
Retail Trade/ Wholesale Trade Overall
Higher 13% 10%
Lower 3% 3%
Same 84% 87%
31.6: Professional Indemnity / Errors and Omissions
Retail Trade/ Wholesale Trade Overall
Higher 11% 11%
Lower 0% 3%
Same 89% 86%
31.7: Property (Property Damage and Business Interruption)
Retail Trade/ Wholesale Trade Overall
Higher 12% 16%
Lower 6% 6%
Same 82% 78%
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 14 GRMS (2015) - Aon Risk Solutions

15. 32: Do you currently purchase cyber insurance coverage or do you plan to purchase in the next 12 months? (If you do not currently purchase cyber insurance, you will be taken to Q35)
Retail Trade/ Wholesale Trade Overall
Insurance currently purchased 37% 21%
Plan to purchase 21% 18%
Not purchased and no plans to purchase 43% 61%
33: Do you feel your terms and conditions for cyber coverage are sufficiently effective?
Retail Trade/ Wholesale Trade Overall
Yes 78% 78%
No 22% 22%
34: Do you feel your limits of liability for cyber coverage are sufficient?
Retail Trade/ Wholesale Trade Overall
Yes 47% 65%
No 53% 35%
35: Does your organization have or are you considering creating a captive insurance company or protected cell company (PCC)? (Select all that apply: If No Captive or PCC held, you
will be brought to the next section)
Retail Trade/ Wholesale Trade Overall
Plan to create a new or additional captive or PCC in the next 3 years 2% 6%
Currently have an active captive or PCC 21% 18%
Have a captive that is dormant / run-off 1% 2%
Plan to close a captive in the next 3 years 4% 1%
No Captive or PCC 72% 74%
36: What is the primary reason for the captive?
Retail Trade/ Wholesale Trade Overall
Strategic Risk Management Tool 38% 32%
Control on Insurance Programs 17% 9%
Access to Reinsurance Market 12% 8%
Cost Efficiencies 12% 15%
Ability to Establish Reserves 0% 3%
Reduction of Insurance Premiums 8% 11%
Tax Optimization 0% 4%
Cashflow Optimization 4% 3%
Risk Finance Expense Optimization 4% 8%
Not Applicable 4% 3%
Other 0% 4%
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 15 GRMS (2015) - Aon Risk Solutions

16. 37.1: What risks is your captive currently underwriting?
Retail Trade/ Wholesale Trade Overall
Auto Liability 23% 25%
Aviation 5% 7%
Catastrophe 18% 15%
Credit/Trade Credit 14% 7%
Crime/Fidelity 14% 15%
Cyber Liability/Network Liability 18% 8%
Directors & Officers Liability 14% 15%
Employee Benefits (Excluding Health/Medical and Life) 0% 7%
Employers Liability/Workers Compensation 36% 28%
Employment Practices Liability 5% 12%
Environmental/Pollution 18% 12%
Financial Products 0% 4%
General/Third Party Liability 55% 45%
Health/Medical 0% 7%
Life 0% 6%
Marine 23% 18%
Product Liability and Completed Operations 41% 27%
Professional Indemnity/Errors and Omissions Liability 14% 26%
Property (Property Damage and Business Interruption) 64% 59%
Terrorism 18% 12%
Third-Party Business 18% 10%
Owner Controlled Insurance Program/Contractor Controlled Insurance
Program
9% 5%
Sub-contractor default insurance 0% 2%
Warranty 0% 4%
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 16 GRMS (2015) - Aon Risk Solutions

17. 37.2: Looking forward over the next five years, please identify what risks you plan to continue to underwrite in your captive along with any new risks you plan to underwrite.
Retail Trade/ Wholesale Trade Overall
Auto Liability 35% 32%
Aviation 4% 6%
Catastrophe 17% 19%
Credit/Trade Credit 17% 15%
Crime/Fidelity 22% 22%
Cyber Liability/Network Liability 43% 23%
Directors & Officers Liability 13% 17%
Employee Benefits (Excluding Health/Medical and Life) 17% 18%
Employers Liability/Workers Compensation 48% 31%
Employment Practices Liability 17% 19%
Environmental/Pollution 17% 19%
Financial Products 0% 4%
General/Third Party Liability 61% 47%
Health/Medical 4% 13%
Life 4% 8%
Marine 35% 23%
Product Liability and Completed Operations 43% 26%
Professional Indemnity/Errors and Omissions Liability 17% 30%
Property (Property Damage and Business Interruption) 52% 56%
Terrorism 17% 14%
Third-Party Business 22% 12%
Owner Controlled Insurance Program/Contractor Controlled Insurance
Program
13% 8%
Sub-contractor default insurance 0% 3%
Warranty 4% 8%
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 17 GRMS (2015) - Aon Risk Solutions

18. Global Insurance Program
38: Do you purchase/control insurance for most of your operations where you operate? (Select one)
Retail Trade/ Wholesale Trade Overall
No, each operation buys its own insurance with no coordination from
corporate headquarters
12% 10%
Corporate headquarters controls some lines and leaves local office to
purchase other lines
48% 40%
Corporate headquarters controls procurement of ALL insurance programs
(global/local)
33% 41%
Don't know 7% 8%
39: If Corporate headquarters purchases programs with global and local policies, which line(s) of coverage do you purchase in this style:
Retail Trade/ Wholesale Trade Overall
Property (Property Damage and Business Interruption) 85% 79%
General Liability/Public Liability 72% 81%
Auto/Motor Vehicle Liability 36% 42%
Workers Compensation/Employers Liability 51% 48%
Directors & Officers Liability 64% 73%
Crime 38% 42%
Marine/Ocean Cargo 57% 49%
Trade Credit 17% 17%
Product Recall and Contamination 17% 18%
Don't know 4% 2%
Other 6% 11%
40: If Corporate headquarters purchases "programs" with global policies issued to parent and local policies issued to local operations, please rate the following from 1 - 10 in terms of
importance to purchasing decision. (1 representing the highest priority)
Retail Trade/ Wholesale Trade Overall
Cost - This approach is more economical 3.7 4.1
Certainty of Coverage - Knowledge of what coverage is included in the
program
3.6 3.9
Statutory Compliance - Access to local admitted coverage where
nonadmitted is prohibited
4.0 4.2
Fiscal Compliance - Ability to pay insurance premium and related taxes 4.7 4.8
Program Performance - Access to local claims and/or other services from
local insurer/policy provider
5.0 4.8
Accounting - Ability to allocate risk transfer costs to local operations vs. pay
from corporate
5.9 5.3
Benchmark Report for: Industry Grouping - Retail Trade/ Wholesale Trade Page 18 GRMS (2015) - Aon Risk Solutions