Risk management vs reinsurance

Insurance and reinsurance are not alternatives to enterprise risk management (ERM). Risk transfer programmes should be used to address structural residual risk. From EY’s experience, companies can identify risks and adopt risk management leading practices to ease the process of finding the right cover at the right price—with the correct reinsurance optimisation. The insurance industry should insist upon this enterprise level of risk mitigation before it issues cover for large risks and data breaches.