AIRMIC grows on back of eventful year

From the economic downturn to issues and events such as Solvency II and the Icelandic Volcanic eruption the past year has thrown down many challenges to AIRMIC, the U.K., risk management association, and its members.

In these difficult economic times Paul Howard, outgoing Chairman of AIRMIC, believes that there has never been more value in membership and active participation within the association, which in his time in office he has attempted to facilitate.

And, risk professionals in the U.K. seem to agree with Mr. Howard as reflected by an increase in AIRMIC membership and attendance of its events.

Last year AIRMIC membership grew by just over 10%, with total membership now in excess of 900. The percentage of members who attended one of its events was up to 59% from 49%.

“The increased numbers indicate the power of member organisations and the fact that people do want to talk to their peers and find out what is going on, particularly as we are in reasonably uncharted waters,” said Mr. Howard, who is also Head of Group Insurance and Risk Management at the supermarket J Sainsbury P.L.C.

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“I am a firm believer that no one knows everything. And I think it is that opportunity to network and bounce things off others, and then also, if there are issues that you are looking to lobby on, to do so with a united voice and through an association, is very important,” he continued.

To help raise member interest and involvement Mr. Howard has, in the last year, attempted to make AIRMIC less London-focused, take regular ‘pulse checks’ of members to address issues of concern and develop its distribution channels.

AIRMIC now hosts regular breakfast seminars, AIRMIC live debates and has developed AIRMIC TV, all of which are available to members via downloads on its website.

Again the figures are positive. “The fact that we had around 70 people attend a breakfast seminar and then 300 people download thereafter is indicating that we are trying to interact with people, that they want to be interacted with and that we are trying to bring more people into the loop,” he said.

“I don’t think for any member organisation there is one key thing that will appeal to all members so you have got to come up with a variety of methods – and that is what we have tried to do over the last year,” said Mr. Howard, who will step down at this year’s AIRMIC conference.

He will be replaced by Nicola Harvey, Group Risk Director at Christie’s, the London-based auctioneers, who is currently Deputy Chair.

Two of the biggest issues for the association and its members over the last year, and likely to be the main focus in the coming year, have been the economy and Solvency II, Mr. Howard told Commercial Risk Europe.

On the financial conditions he believes that, in particular, the ‘stresses and strains’ on the Euro will be high on the association’s agenda next year.

On the issue of Solvency II, Mr. Howard has been ‘quite heartened’ by the fact that when the association has engaged with legislators across Europe they still appear to be open to debate.

“Things are still moving and that is why I think it will be an ongoing issue as the thought processes become more developed. They are listening to the market and I would say that the views are still being formulated,” he explained.

Both issues have needed closer collaboration with FERMA, and AIRMIC has made sure that this has occurred over the last year, noted Mr. Howard.

Given the poor state of the Euro, more E.U. legislation inevitable and with a rising number of members now with mainland European operations, this co-operation with the European risk management federation will ‘become absolutely more important and useful,’ he added.

Other big issues for this year have been the ongoing debate about broker commissions and transparency, the revisions to the combined code and the implementation of the new risk management standard, ISO 31000, he continued.

In terms of events the biggest issue, and still in the spotlight, is the eruption of the Icelandic volcano, Eyjafjallajokul, and the resulting ash cloud, Mr. Howard said.

It has sharpened the focus on scenario planning and the breadth of considerations that organisations and risk managers are prepared to think about and act upon, he explained.

“People may have considered a volcanic eruption, but, it seems quite improbable that they would have contemplated it shutting down European airspace. And, how long will it go on for? What will the impacts be? Will it change peoples’ behaviour? These are the issues here,” he noted.

At the AIRMIC conference, to be held in Manchester, England June 14th to 16th (to attend go to www.eventsforce.net/airmicconference2010) the association will publish results from several of its current big initiatives, Mr. Howard announced.

AIRMIC is carrying out in-depth analysis with the London-based Cass Business School on the consequences of major events on organisations. It will be a three-year project with the results from phase one, which considers the nature of these impacts, that will be released at the conference.

The association will also publish results from research it has carried out amongst members over the last six months, into risk governance and the structure of reporting within organisations.

It will consider what are best practices in terms of who reports to whom, what is efficient and how do processes join up with the board and audit committee.

And, AIRMIC will also produce a guide for members on how best to build their career, based on interviews with those who have reached the pinnacle within risk management.

“We hope it will help make sure that the profession develops and is seen as more of a profession,” explained Mr. Howard.

“There is a key process whereby people can feel that they are developing…not just for the people who are new to risk management, but, also looking at those people in mid career and how do they look to widen their role,” he continued.