The company secretary can be a risk manager’s best friend
A risk manager’s best friend can be the company secretary—certainly for risk managers who aspire to play a more central role within their companies and reposition themselves as strategic business partners.
That is according to Lynda Lucas, chair of Airmic, speaking at the organisation’s press conference and commenting on the results of the Airmic 2019 survey, which revealed that 75 percent of respondents expressed a desire to have greater opportunities to influence the strategic decision-making within their organisation.
Lucas explained that company secretaries are very good at getting items onto the agendas of board meetings. “They have no trouble getting things on the agenda—that is their job,” she said.
“Different companies have different cultures and ways of working but the company secretary will know that and understand the best way of going about things.
“They can be very good at helping risk managers achieve their objectives—they can be their best friend within a company.”
She noted that Airmic is forming a special interest group specifically for company secretaries that will be unveiled in July this year.
Tim Murray, deputy chair of Airmic, added that the onus of moving the importance of risk management closer to the centre of the agenda of boards must be shared.
“The C-suite must learn to understand the importance of risk management. Cultural change at the top is required as well,” he said.
A changing landscape
Julia Graham, deputy CEO of Airmic, commented on some wider points that came out of the survey. She said it showed that risk managers are in a “fantastic position” to adjust to a changing business landscape and are “very much up for the challenge and want to learn”.
Graham added that respondents expressed a desire to acquire skills beyond some of the expected areas, such as around data and analytics.
“They want to communicate better and learn how to relay their message more efficiently,” she said.
The comments were made in the context of the results of the Airmic 2019 member survey, a key finding of which was that risk management is moving from the back office to centre stage, creating opportunities for risk and insurance professionals to reposition themselves as valued strategic business partners.
The survey results paint a picture of an increasingly ambitious profession in which Airmic members are keen to upskill, gain exposure to their leadership and attain new knowledge relevant for the changing business landscape.
It reveals a changing profession, with a seven-point increase from 2017 in the percentage of members who are responsible for risk management, demonstrating the growing priority businesses are placing on the management of risk.
The results revealed that insurers are providing a wider range of services, and in particular are offering more guidance on how to manage intangible risks rather than simply paying out when things go wrong—a development welcomed by risk managers.
Key trends
Use of data and analytics is improving relationships with insurers: more than half (51 percent) of respondents said data and analytics have been effective or very effective in strengthening their insurer relationship, while half said they had led to more tailored insurance relationships.
The survey showed that risk management is generally a more gender-diverse profession, salary levels on average are higher and business backgrounds are increasingly diverse than formerly. Respondents indicated that their education priorities are communication and influencing skills, and commercial and financial acumen.
Protecting intangible assets was recognised as a key priority, while risks beyond the organisation’s control are expected to rise in profile. Loss of reputation has been identified as the top business risk for the third consecutive year, while data security and political uncertainty are also on the rise as topics. Seventy-six percent of respondents said loss of reputation had been a top-of-mind business risk in the last 12 months.
Risks related to the megatrends of geopolitical volatility, climate change and digital transformation are of most concern, but respondents are less confident in their ability to manage these threats. Some 64 percent want to see more innovative/tailored insurance solutions.
The survey revealed that the expectations placed on directors are rising. Companies are more global and directors are stepping up and embracing change—they are listening more and engaging more. Some 68 percent said data security is of most concern in the boardroom.
Finally, the survey showed that members are ambitious about contributing to the strategic direction of their organisation. The profession is confident in its ability to bring value and identify opportunities through risk and insurance management.
Some 75 percent of respondents want greater opportunities to influence strategic decision-making within their organisation.
