More than 50 risk managers from across Asia attended the latest Lloyd’s-Parima Professional Development Programme at the end of last month in Manila, reports the Asia-Pacific risk management association.
Parima executive director Stacey Huang kicked off the session with an interactive risk management game designed to help the participants see how organisations, teams and individuals handle risk.
Participants then pinned down three behavioural competencies that are most critical to risk managers. These were: building relationships both externally and internally, maintaining a big picture and long-term strategic thinking, and being able to influence without authority, reported Parima.
Steve Tunstall, general secretary of Parima, followed with a session on the management of reputational risks and online presence. Mr Tunstall gave several examples of how different companies had managed PR crises. The risk management consultant stressed that living in the digital age calls for a new approach in reputational risk management.
Guy Hillyard, regional head of claims at insurer Tokio Marine Kiln, the Lloyd’s arm of the Japanese insurance giant, provided a breakdown of factors that are involved in the human impact of a claim.
Mr Hillyard used the tragic Shoreham airshow crash in the UK in 2015 as a reference scenario and explained the immediate actions that need to be taken after such an incident. He explained the immediate questions that need to be answered, how to handle the media, obtaining actual photo reports through technology, dealing with the victims and their families, rolling out the claims policy and the aftermath.
Pavlos Spyropoulos, head of market development, Lloyd’s Asia, summarised the results of the Bashe Attack: Global Infection by Contagious Malware report, published earlier this year by CyRiM, the Singapore-based public-private initiative that assesses cyber risks.
The study, supported by Lloyd’s, Aon Centre for Innovation and Analytics, MSIG, SCOR, TransRe, the Nanyang Technological University of Singapore Insurance Risk and Finance Research Centre, and the Cambridge Centre for Risk Studies, explores a scenario in which companies’ devices are infected with malware that threatens to destroy or block access to files unless a ransom is paid.
The attack is launched through an infected email, which once opened is forwarded to all contacts and within 24 hours encrypts all data on nearly 30 million devices worldwide. Companies of all sizes and in all sectors would be forced to pay a ransom to decrypt their data, or to replace their infected devices.
The report estimates a cyberattack on this scale could cost $193bn and affect more than 600,000 businesses worldwide. The report shows that the global economy is underprepared for such an attack, with 86% of the total economic losses uninsured, leaving an insurance gap of $166bn.
Jessica Schappell, claims manager at Lloyd’s insurance group Beazley, discussed the tabletop side of cyber insurance. Ms Schappell highlighted the importance of preparation, having an incident response plan and keeping it up to date and relevant, internal and external communications, training employees and making sure security measures are implemented.
An insight into the Philippines’ current political violence and terrorism climate was given by Steve Hatton, political violence and contingency underwriter at Beazley. Mr Hatton delved into actions companies could take to lower their risk exposure, what can be covered and what cannot be covered, and underwriting considerations. He also cited actual incidences from different regions and how the insurer dealt with it, reported Parima.
The Lloyd’s-Parima Professional Development Programme is an educational initiative designed to build knowledge and expertise for risk managers. Since launch in 2016, the programme had been held in Singapore, Hong Kong, Tokyo, Sydney, Bangkok and Mumbai, tailored to address the needs of local risk managers. For more information, click here.