Magazine article Risk Management

Going Global: Another Take

Magazine article Risk Management

Going Global: Another Take

Article excerpt

Discussions of developing and managing a successful global risk management and insurance program have all too often focused on questions regarding the relative merits of an owned versus nonowned broker network--their infrastructure and operations, advantages or disadvantages--rather than focusing on identifying and achieving each client's global objectives.

If we can accept that the critical elements of global insurance and risk management consulting are the identification of objectives and the management of client information, one begins to understand that multinational risk management has little, if anything, to do with whether or not the broker owns their own network. In fact, one can effectively argue that an owned network actually hinders this effort. But that would take us, again, in the wrong direction. It is time to replace the old, tired "who owns it" dialogue and take a fresh look at the world of today.

Flexibility. Firms promoting owned networks have argued that control of their own global resources is advantageous and is best achieved by building (brick and mortar) or buying foreign operators. This initial investment and the ongoing operating cost associated with ownership are significant and can produce an internal focus on margin and a profit center mentality that detracts from the required external focus on customer needs and objectives and the cooperative delivery of essential client services. Meanwhile, problems that occur in one part of the world cannot simply be isolated and corrected. Each office is part of the larger infrastructure and when there are local service challenges, the entire relationship must be reviewed. This causes delay, disinterest and poor service results.

Collaboration. Client interests are best served by investing in people, creating global relationships and developing the leading-edge technology tools needed to effectively move, manage, evaluate and collaborate on global information around the world. The priority is a well-managed global program that is focused entirely on providing the highest level of service to the client's international offices and corporate risk managers--driving results with maximum flexibility. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.