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Insurance can play a leading role on reputation risk - KPMG

Published on Thu, 10/09/2020 - 22:13

Experts from KPMG and AIG to discuss reputational and governance risks in the final instalment of Airmic Talks focusing on the results from the annual survey report - Top risks and megatrends 2020.

Airmic’s fortnightly podcast series has focused on six key themes from the report over the past three episodes and in the latest discussion Richard is joined by Paul Merrey, Strategy Partner at KPMG, and Arturs Kokins, Associate Director at KPMG, to discuss reputational risk, as well as Christopher Magee, Head of Commercial D&O at AIG in the UK, addresses the key areas of most concern to risk professionals in the areas of governance, laws and regulation.

Mr Merrey and Mr Kokins outline what we mean by reputation in comparison to identity or brand and went on to discuss the growing number of risk financing options available in the market.

“It is definitely an area that insurance should be more involved,” Mr Merrey explained.” The first bit is the awareness of organisations that insurance can play a role here and for insurers to put in a bit more focus on this area because insurance is about protecting an organisation’s most vital assets.

“In developing insurance offerings its better understanding of the asset values, what the triggers are, respective preferabilities, calculating the actual loss. In all of these elements, progress is being made.”

In the second half of the episode Mr Magee addresses the key areas of most concern to risk professionals in the areas of governance, laws and regulation. In the risks and megatrends map found on page 23 of the report, Airmic members ranked compliance with evolving digital regulations was fourth on the list of top concerns.

“Compliance with evolving digital regulation continues to be a common concern among risk professionals in the medium term,” Mr Magee said. “It certainly ties in with the overall importance of the cyber and technology megatrend. More specifically, data protection and privacy have been big areas of high concern for corporate boards for some time now.

“Also, the upcoming duty of care laws to protect children from online harms, when introduced, will certainly add to the areas of focus. The underlying message is that good cyber security governance is absolutely essential in today’s world.”

You can listen to the full Airmic Talks back catalogue on any podcast app, including Apple Podcasts and Spotify.