As a part of our Risks of 2013 coverage, we asked some industry experts their thoughts on emerging issues. This was the response from Thomas A. Lawson is executive vice president and responsible for global insurance operations at FM Global, an insurance company based in Johnston, Rhode Island.
RM: What emerging strategies can a company use to improve its loss control in 2013?
Thomas A. Lawson: Improved data analytics. Sophisticated data gathering and analysis techniques can provide companies with a better understanding of the financial impact of potentially disastrous events.
Such data can also help drive business continuity efforts. When an organization looks beyond just IT recovery or emergency response plans and improves its understanding of the financial implications that can result from a disaster, it can better focus its business continuity efforts on revenue, profitability and overall resiliency.
Then, with meaningful financial measurements in hand, risk managers can achieve a higher return on investment from company resources. Additionally, having an understanding of the financial impact of a loss before it happens can give risk managers clearer insights into the cost of their risk management decisions.
Companies should also consider sharpening their evaluation of third-party property risks, especially as it relates to their supply chains, which are becoming increasingly stretched, layered and interconnected.
Likewise, it is prudent to ensure a firm’s risk management practices are consistent throughout all their properties, regardless of whether they are directly owned or relied upon indirectly through the company’s supply chain network.