The document discusses cultural aspects in a risk and insurance context. It describes how understanding culture is important both inwardly for an insurer's risk management and outwardly to understand a client's risk resilience. It examines claims data to identify cultural attributes that influence how well clients handle losses. These include clear risk definitions, recovery strategies, proven alternative capabilities, and consistent business objectives. Understanding these "soft" cultural factors is important to enhance resilience alongside "hard" risk management and planning.

1. Thanks for your support !
LIVING AND
WORKING IN A
RISKIER WORLD
PROFESSION – INNOVATION – DIVERSITY

2. BRUSSELS, 20-21 October
www.ferma.eu
FORUM 2015
Venice, Italy 4-7 October
Cultural Risk workshop
 Attitudes to risk across cultures
Candida Snow – Snow Culture & Communication
 Culture in risk and insurance
Tim Astley – Zurich Insurance Company Limited
 Global business, global culture?
John Ludlow – Director, Leading in Risk Limited
Moderator:
Julia Graham
President of FERMA
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3. BRUSSELS, 20-21 October
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A quick experiment

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9. BRUSSELS, 20-21 October
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What did you see ?

10. BRUSSELS, 20-21 October
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11. BRUSSELS, 20-21 October
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 risk
 compliance
 a contract
 deadlines
 planning
 corruption
 trust
 leadership
 …

12. BRUSSELS, 20-21 October
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Culture is the accepted values, customs,
attitudes and behaviours of a group of people
Culture is the filter through which
we perceive, evaluate and judge
National
CorporateProfessional/
department/team

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Symbols
Heroes, role models
Rituals, practices
Values
What is culture?

14. BRUSSELS, 20-21 October
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Value differences can be explained by four
dimensions of national culture
Power distance « PDI »
Individualism / Collectivism « IDV »
Masculinity / Femininity « MAS »
Uncertainty avoidance « UAI »
Professor Geert Hofstede

15. BRUSSELS, 20-21 October
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Power distance
Low power distance
(PDI-)
 responsibility delegated
 hierarchy for convenience
 same rules for all
 initiative
High power distance
(PDI+)
 responsibility at top
 hierarchy is existential
 privileges
 obedience

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0 – 20
21 - 40
41 - 60
61 - 80
81 - 100
> 100
Power distance

17. BRUSSELS, 20-21 October
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Individualism
Collectivism
 the group: “We”
 group responsibility
 value standards differ for
‘in-group’
 loss of ‘face’, shame
 relationship oriented
Individualism
 the individual: “Self”
 individual responsibility
 value standards apply to
all
 loss of self-respect, guilt
 task oriented

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0 - 20
21 - 40
41 - 60
61 - 80
81 - 100
Individualism

19. BRUSSELS, 20-21 October
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Masculinity
feminine (MAS -)
 doing your best
 levelling
 consensus
 failure allowed
 sympathy for the underdog
masculine (MAS +)
 being the best
 status
 competition
 failure is a disaster
 admiration for achievers

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0 - 20
21 - 40
41 - 60
61 - 80
81 - 100
Masculinity

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Uncertainty avoidance
Low uncertainty avoidance
(UAI -)
 low need for structure and rules
 comfortable with unfamiliar risks
 what is different is interesting
 relaxed
High uncertainty avoidance
(UAI +)
 need for structure and rules
 comfortable with familiar risks
 what is different is dangerous
 stressful

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Venice, Italy 4-7 October
0 - 20
21 - 40
41 - 60
61 - 80
81 - 100
> 100
Uncertainty avoidance

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Action and Implementation
Time
Action
German, Austrian
Dutch, Danish
American / UK
Belgian, French

24. BRUSSELS, 20-21 October
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Distribution of scores within the EU

25. PUBLIC
Cultural aspects in a risk / insurance context
Tim Astley
Ferma conference, October 2015, Venice

26. BRUSSELS, 20-21 October
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Inward
 Regulatory drive
 How to ensure good / effective risk
management
 Search for consistency across all
levels of the business (decision
making)
Two lenses – inward and outward looking
Why is it important to an insurer?
26
Outward
 Need for full understanding of risk and
resilience (current approach – on-the-
ground, grading)
 What determines how a company will
handle a loss?
 Need metrics to determine what ‘good’
looks like

27. BRUSSELS, 20-21 October
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Ability to gain insight is different
 Inward
How to approach these two challenges?
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Define ways to embed them
e.g.
• Commitments in personal objectives
• Behaviour of ‘key risk takers’
• Understand through employee surveys
• Clarify relationship between business
decisions and risk tolerance
• Analyse ‘incident’ responses – learning
curves
Identify what attributes are important
e.g
• Decision making
• Leadership
• Staff involvement
• Outcome orientation
• Meritocratic
• Market focus
• Innovation
 Outward
• Relies more on experience, broad indicators and gut feel

28. BRUSSELS, 20-21 October
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 Examined claims with significant business interruption
(consequential loss) component
 Identified key elements that influenced how well claim was
handled
 We built a picture of what ‘good’ resilience looks like
Looking from the outside
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BI Claims lessons learned
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Determining Resilience
Is there a clear understanding /
definition of the critical activities?
If something did go wrong, what
would the company do?
Has the company demonstrated the
credibility of alternatives?
What broader business issues might
influence decision making?
Impact assessment
Recovery strategies
Proven / tested
capability



Business culture ?

30. BRUSSELS, 20-21 October
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Need to understand:
 Market dynamics and business drivers
 Consistency of objectives
 Silos, decision making
 Track record
 Employee profile
What does ‘culture’ consist of?
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31. BRUSSELS, 20-21 October
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What does ‘good’ look like?
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Positive Negative
How good is the information flow?
Are there any concentrations of knowledge?
What is the ‘residence time of key employees*?
(* might be the entire workforce or influential individuals)
How easy is it to make a decision?
Is there consistency of purpose across functions / businesses?
How homogeneous is the organisation?
How successful is the business? How dominant is the financial imperative?
How well do they understand their business?
To what extent does technical skill align with business skill?
How well have they done it before (responded to a crisis)?
How are external relationships managed?
How cooperative is management?
What evidence is there of good management controls?
Looking (from the outside) for indicators that might predict behaviours in ‘stress’ situations

32. BRUSSELS, 20-21 October
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 ‘Hard’ aspects of risk management and planning are
important
 Ensure the ‘soft’ side is not ignored
 Requires an understanding of culture
 Show how organisations can be adapted
 Enhanced resilience
Conclusion
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33. BRUSSELS, 20-21 October
www.ferma.eu
FORUM 2015
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Global business
Global culture?
John Ludlow
Director
Leading In Risk Limited
john.ludlow@leading-in-risk.com
+44 (0)7808 094542

34. BRUSSELS, 20-21 October
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Business yesterday
• Business structured around geographies
• Oversight limited
• Staffed with professional expat leaders
• Policies mainly local and often detached from PLC policies
• Business built in the local culture and environment
• Products and services delivered to regional needs
Allmytroublesseemedsofaraway

35. BRUSSELS, 20-21 October
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What changed
• Greater trade between and within regions
• High levels of labour migration within and between countries
• Out-sourcing and off-shoring of production and support
• Supply-chains have become more international
• Shift in the balance of power towards Eastern economies
• Internet based systems and communication
• Globalisation of consumer expectations
• Intangible assets, like brands, have risen in value
Complex,Integrated,Fast,ConsistentandTransparent

36. BRUSSELS, 20-21 October
www.ferma.eu
FORUM 2015
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Brands evolved with the economy
As the economy evolved, driven by competition and enabled by technology,
so too have brands
• Branded experiences became the new growth area and global markets enabled
global brands
Raw
Materials
Goods
Services
Experiences

37. BRUSSELS, 20-21 October
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Brands are more important & fragile than ever
Brands now represent Business Ecosystems
•Complex and opaque supply chains – but can I trust what I am buying?
•Web-based technology – but who has my data and what are they using it for?
•Brand franchising – but who am I trusting?
Trust is in decline for many
•Social media is enabling consumers to communicate
•Regulators are moving to protect consumers
•Reputation that took years to build can be destroyed in an instant
Strong global brands are trusted and valuable

38. BRUSSELS, 20-21 October
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Strong and resilient global brands
Centrally driven to be relevant, distinctive, repeatable and consistent
• Leaders of their business ecosystems
• Mature Leadership
• Matrix Management
• Manage to outcome and effect rather than to task
Operate responsibly and sympathetically in local cultures
• Disciplined
• Stakeholder aware and consumer centric
• Proactively responsible
• Responsive to issues

39. BRUSSELS, 20-21 October
www.ferma.eu
FORUM 2015
Venice, Italy 4-7 October
Strong global brands think globally
Strong Leadership
• Purpose, beliefs and values
• Vision; mission, ambition, strategy and behaviours
• Organisation of the business resources by market segments and regions
Attractive Brand Stories
• History and culture of the business – how things get done and why
• Brand position in the competitive landscape
• Clarity about customers – who they are and what they expect
• Product & service essentials and differentiators

40. BRUSSELS, 20-21 October
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Strong global brands think globally
Common and proactive management systems
• Policies, procedures and controls within the business
• Technology and information systems
• People development and management systems
• Active communication
• Stakeholder groups
• Internal and External
• Broadcast and Listen

41. BRUSSELS, 20-21 October
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FORUM 2015
Venice, Italy 4-7 October
Leadership at IHG - Vision

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Behaviours
Winning Ways
• Identified by staff members from around the world
• Behaviours that they felt made IHG successful
Mature Leadership
• Doing the right thing and showing we care for others
• Working together and treasuring diversity
• High performance culture

43. BRUSSELS, 20-21 October
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Purpose
 Guest centric mission
 Emotional calling
 Business ecosystem
 Brand strategy

44. BRUSSELS, 20-21 October
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Leadership at IHG - Ambition

45. BRUSSELS, 20-21 October
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Leadership at IHG - Trust
IHG is a brand led business
 We champion the trusted
reputation of our brands to
drive our performance
 We consistently deliver on our
brand promises
Trust
& Love
Brands
People
Delivery

46. BRUSSELS, 20-21 October
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Build Trust By Doing Business Responsibly
RESPONSIBLE
DELIVERY
RESPONSIBLE
BRANDS
RESPONSIBLE
PEOPLE
& risk
measure
Compliance
Monitor program
delivery &
emerging issues
deliver
consistent &
repeatable
experiences
do no harm
do good winning
live our
effort is
ensure
valued
RESPONSIBLE
BUSINESS
maturityways

47. BRUSSELS, 20-21 October
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Responsible Business Programmes
Example:
Safe Hotel

48. BRUSSELS, 20-21 October
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Protect Reputation By Managing Crises
PREVENT
•Risk assessments
•Responsible Business
Programmes
•Crisis response and crisis
communications
•Risk and Crisis
Management capability
RESPONSE
•Media monitoring,
intelligence gathering
•Crisis training, scenario
planning
PREPARE
•Lessons learned, review or
revise strategy
•Rebuilding stakeholder
trust
RECOVER
Pre-Crisis
/ Incident
Post-Crisis
/ Incident

49. BRUSSELS, 20-21 October
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Summary – it is all about trust and reputation
Acting locally to build and maintain personal relationships
 West – we leave home, go to work and do a deal
 Plus in America the law comes first
 East – think relationships and marriage
Thinking globally to deliver consistently
 Leadership and Vision
 95% global discipline and brand stories
 Common Systems
 Active Communication

50. BRUSSELS, 20-21 October
www.ferma.eu
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Venice, Italy 4-7 October
50

51. Thanks for your support !
John Ludlow
Director
Leading In Risk Limited
john.ludlow@leading-in-risk.com
+44 (0)7808 094542
Tim Astley
European Regional Practice Leader
Zurich Insurance Company Limited
tim.astley@zurich.com
Candida Snow
Snow Culture & Communication
candida@snowcc.info
www.snowcc.info
T: +31 38 466 2478
M: +31 655 842 762