Designing and implementing an integrated Corporate Governance Framework
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Andrea Kanserski presented on designing and implementing an integrated corporate governance framework at Gallagher Bassett. The presentation covered: 1. An overview of Gallagher Bassett, including its accountability and responsibility framework and 5-year risk plan. 2. Details of Gallagher Bassett's risk maturity assessment, which has improved from "ad hoc" to "managed" over 6 years through initiatives like its corporate governance framework. 3. The goals and strategies of Gallagher Bassett's risk culture and communication approaches, which aim to ensure staff ownership of risk management practices.
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Designing and implementing an integrated Corporate Governance Framework
- 1. NATIONAL CONFERENCE & EXHIBITION 2014 Designing and implementing an integrated Corporate Governance Framework Presented by Andrea Kanserski, National Risk Manager Gallagher Bassett Pty Ltd Platinum Sponsor Silver Sponsor Bronze Sponsor Risk Manager of the Year Award Sponsor Conference and Exhibition Partners
- 2. Introduction • Who is Gallagher Bassett? • Company Overview • Accountability and responsibility framework • Five year risk plan • Risk maturity and assessment • Influencing risk culture • Key business drivers that the RM can influence • Corporate Governance Framework • Business growth • What our clients say National Conference & Exhibition 2014
- 3. Who is Gallagher Bassett? Gallagher Bassett – the world’s largest Multi-disciplinary Third Party Claims Administrator Our core products include: • General Insurance Claims Management – all classes • Workers Compensation – Statutory and Self-Insured • Crisis Management • Consulting & Audit Services National Conference & Exhibition 2014
- 4. Company overview Gallagher Bassett Services Pty Ltd (GB) is wholly owned by Gallagher Bassett Services Inc. (GBSI), which is in turn wholly owned by Arthur J. Gallagher & Co (AJG). • Experience – 4,230 employees in 100 sites • Client Profile – 4,291 clients worldwide (98% retention) • Financial Stability – US$549 million revenue in 2013 National Conference & Exhibition 2014
- 5. Accountability and responsibility framework GB Corporate Finance & Accounting Finance & Accounting Account Management Information Services Human Resources Business Development Workers’ Comp’ General &Self Insurance Audit & Compliance Risk Management NSW Victoria South Australia General Insurance Self Insurance Infrastructure Applications IS Strategy & Architecture PMO/IT Security Business Intelligence HR L&D OH&S Sales & Marketing Tenders Claims Operations Corporate Service Operations Premium Operations SI Operations Account Management GB Operations GI Operations Project Risk Registers: Strategic Risk Register Operational Risk Register Contractual Risk Register National Conference & Exhibition 2014
- 6. Five year risk plan Develop •Corporate Governance Charter •ERM Policy & Framework •Accountability & Responsibility •Risk Assessment Criteria •ERM Training •Reporting framework Implement •Risk Register Framework & Tool & Reporting •Control Framework and Library •Audit and Compliance framework and process •Strategic & Operational Business Planning •Policy & Process/Procedure Management •Business Continuity and Disaster Mgt Policy & Framework •Incident & Claims Mgt Policy & Process •Customer Feedback Mgt Policy & Process Integrate •Project Management •Performance Review and Remuneration •Budget and Capital allocation and spend •Learning & Development •Standardised controls with Process management, Incident Mgt. & Customer feedback •COSO (SOX compliance) •Critical processes &Business continuity testing •3 tier audit framework and process •Contract Management •Information Security Mgt •Asset Management •OHS Management •Management Reporting Evaluate •Internal audit & compliance •External audit •Risk Maturity Assessment 2007 2012 National Conference & Exhibition 2014
- 7. Risk maturity and assessment Adhoc Initial Repeatable Managed ERM-based approach • Level 4 Managed ERM process management • Level 4 Managed Risk appetite management • Level 3 Repeatable Root cause discipline • Level 3 Repeatable Uncovering risks • Level 4 Managed Performance management • Level 4 Managed Business resiliency and sustainability • Level 4 Managed GB in 2007 GB in 2009 GB in 2011 GB in 2013 During the past six years, GB has matured from a risk maturity assessment rated as ‘Ad Hoc’. This is defined as: ‘Corporate culture has little risk management accountability. Risk management is not interpreted consistently. Programs for compliance, internal audit, process improvement and IT operate independently and have no common framework, causing overlapping risk assessment activities and inconsistencies. Controls are based on departments and finances. Qualitative risk assessments are unused or informal. Risk management is considered a quantitative analysis exercise’. GB has now moved to a maturity assessment rated as ‘Managed’, defined as: ‘Risk management is clearly defined and enforced at every level. A risk policy articulates management’s responsibility for risk management, according to established risk management processes. An Enterprise Risk Council exists and management develops and reviews risk plans. The ERM Process is coordinated with managers’ active participation. Opportunities associated with risk are part of risk plans’ expected outcome. Authentication, audit trail, integrity and accessibility promote roll-up information and information sharing. Periodic reports measure ERM progress for stakeholders, including the Board of Directors.’ National Conference & Exhibition 2014
- 8. Influencing risk culture and internal/external communication Objective 1 – ensure communication with all employees is undertaken in the most efficient and effective manner •Key strategy – Build robust, professional working relationships with the board, executive and business operations to outline risk management plan and strategies. •Key strategy – Develop articles on Risk Management plan, communication and integration strategy and objectives for GB magazine for all GB staff and customers •Key strategy – Review Risk Management intranet website to enable access to information and risk register. •Key strategy – Develop and incorporate standardised Risk Management training into induction and orientation program. •Key Strategy – Develop risk review and reporting framework including meeting schedule – Executive and operation, Compliance and Audit Committee, Risk Management Committee, Ethics Committee Objective 2 – ensure senior staff share ownership of and are fully aware of the Risk Management plan, policy and framework and how it relates to Gallagher Bassett’s vision and values •Key strategy – Define and implement risk context – Strategic, Operational, Contractual and Project risk management •Key strategy – Risk Policy & Framework & risk register define and implement risk management accountability and responsibility across the enterprise. •Key strategy – Develop Risk Management Documentation: Likelihood, consequence and rating matrices for approval by GB Board , Managing Director and senior executives •Key strategy – develop and implement integrated business management tools to enable & support business information analysis and decision making. •Key Strategy – Incorporate risk, audit & compliance, incident, customer feedback into executive and operational management reporting Objective 3 – ensure multiple communication and innovative/creative training mediums to enhance knowledge of risk management are utilised •Key strategy – Incorporate Risk Management into staff induction and learning and development program. •Key strategy – Develop and implement self paced, interactive electronic learning modules - risk, control, audit, incident management, Business Continuity, Customer feedback, Ethics and Fraud Objective 4 – ensure staff remain enthusiastic and committed to the process and demonstrate ongoing application of it in all business management practices •Key strategy – Ongoing communication and feedback between National Risk Manager and Executive and senior management staff. •Key strategy – Lead by example- Board, Executive and management ownership and management of risk identification, assessment, treatment/actions, risk reviews and reporting. •Key strategy –Remuneration and performance recognition for managing risk and achieving planned business outcomes National Conference & Exhibition 2014
- 9. Our Vision: Gallagher Bassett is recognised as the ‘go to’ business partner in Third Party Administered claims management services Our Purpose: To foster long-term relationships with our customers by providing them with solutions that help them meet their goals. To support our people, allowing them to realise their full potential. To deliver to our owners a sustainable, profitable and growing company. Ethics & Fraud Management Client Contract Management Incident Management Customer Feedback Management Corporate Governance Framework We believe our people... Are our strength We trust... Our people We lead... By example We are accountable... And Accept responsibility We take pride... In who we are and what we do We deliver... For our customers Strategic & Operational Business Planning Risk Management Internal Control Audit Policy and Process Management Business Continuity and Disaster Recovery National Conference & Exhibition 2014
- 10. Risk and corporate governance integration National Conference & Exhibition 2014
- 11. Gallagher Bassett business growth ComCover contract VIC WorkCover SA WorkCover IT infrastructure platform Disaster recovery framework Adhoc Initial Repeatable Managed National Conference & Exhibition 2014 250 200 150 100 50 0 ComCover renewal Risk and compliance integration through company control framework Succession planning 2009 2010 2011 2012 2013 2016 ($m) ISO 27001 IT security management certification New claims management system APEX HR Recruitment Framework MARCOM communications framework Grow Beyond career and leadership development JDE Finance Claims practice System excellence model National OHS strategy Internal restructure to align business with product offerings Policy management system Process management system Electronic risk register
- 12. Client Testimonial – Barbara Stenning ‘...GB represented a “no risk” partner for us as far as APRA’s regulatory requirements were concerned, due to their robust corporate governance protocols and disciplines. None of the other competitors that I met with had already got in place processes, procedures, documentation and testing that would meet the APRA standards that a licensed insurer such as W.R. Berkley require from a partner...Their professional and embedded approach to the management of operational and contractual risks, fraud and general business continuity clearly sets them apart from their competitors.’ – Barbara Stenning, National Head of Claims, Solicitor, W.R. Berkley Insurance Australia National Conference & Exhibition 2014
- 13. Questions www.gallagherbassett.com.au National Conference & Exhibition 2014
- 14. NATIONAL CONFERENCE & EXHIBITION 2014 Thank you. Platinum Sponsor Silver Sponsor Bronze Sponsor Risk Manager of the Year Award Sponsor Conference and Exhibition Partners