African risk community reveals concerns in bridge building AMRAE survey

The survey results, which were presented during the first day of the 22nd Rencontres de l'AMRAE in Deauville, provide a rare glimpse into the nascent African risk management and corporate insurance market. 200 African risk managers were canvassed by AMRAE in an initiative forming part of the association's project to spread risk management across French-speaking countries, which has been developed with the support of its Belgian counterpart, Belrim. Most respondents, 65%, cited better understanding the technical aspect of insurance as key to better dealings with the insurance market. Deeper knowledge of loss prevention and business continuity techniques was cited by 42% and market data by 30%. hide The survey also focused on where improved risk management knowledge is most desired. The number one risk, mentioned by 55% of respondents, was legal risks, followed, on 53%, by financial risks. Fraud is a concern for 48% of respondents, while 35% expressed a growing worry about cyber risks, reputation and human resource risks. The survey was designed as a first step towards building a network of risk managers in French-speaking, or francophone, African countries. It is a region where French companies are expanding their presence. However, participants of a roundtable that took place shortly after the survey results were revealed said that few African companies have proper risk and insurance management departments. Richard Lowe, President of Insurance company Activa, said that, as a rule, risk managers are only found in African units of multinational corporations. Even in large local firms insurance is usually the responsibility of financial directors or other departments, he said. Challenges to the development of risk management in Africa were illustrated by the testimony of Christine Makany, a consultant based in Brazzaville, the Republic of Congo capital. "When I received my risk diploma in 2009, I was presented as the first risk manager in Africa," she said. "It shows how long the road is that we still have to tread...There are no other risk managers in Congo. I am the only one." Ms Makany urged AMRAE and other bodies to promote risk management among African companies. "Risk management is not really known, it is only beginning to develop in my country," she said. "People are in fact very interested in it, especially in the army, the health ministry and other public bodies. We have faced several catastrophic events that, under different circumstances, would not have been so severe. There is a general lack of preparation." She said, however, that efforts are finally being made, via legislation, to impose risk management practices in Congo. The roundtable participants said that spreading risk management across francophone Africa is not an easy task due to the lack of risk professionals working in the region. They acknowledged that it would be very difficult to create risk management associations in all French-speaking African countries. Alternative solutions, such as a pan-Africa association or one focused on the countries belonging to the CIMA group, would likely be a more realistic option, they said. Franck Baron, President of PARIMA, the new pan-Asian risk management association, stressed that mature organisations like AMRAE are in a privileged position to help develop the risk profession in less mature economies. Multinational groups could and should contribute to the effort because they need local skilled professionals to properly implement risk management programmes in African units, the experts said. In the short term, AMRAE President, Gilbert Canaméras, suggested the formation of a 'risk management club' for French-speaking African countries where risk managers, brokers, insurers and other interested parties could share knowledge and discuss best practice.

African risk community reveals concerns in bridge building AMRAE survey

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