The changing face of risk management (Part 2 of 2)

Last week, I discussed Accenture research on the changing face of risk management. This week, I’ll highlight some of the findings in more detail.

The changing role of the Chief Risk Officer (CRO)

As the role of the CRO increases, so does the importance of collaboration and alignment with the Chief Financial Officer (CFO).

The importance of culture

Risk management must be embedded into corporate culture; furthermore, reward and compensation structures need to be aligned with the organization’s risk and compliance rules.

Increasing complexity

Business will only get more complex, not less. Insurers must prepare to meet these challenges with access to better information and insight.

Geographic shifts

Risk management is no longer concentrated in the usual city centers. In fact, Accenture research shows that 90 percent of Latin America businesses have an enterprise risk management strategy—compared with 54 percent of European and 60 percent of North American businesses.

Technology as an enabler of risk management

A rush of new tools and technologies are at insurers’ disposal; the challenge lies in integrating these tools in a way that aligns with the business and creates a competitive advantage.

Partnerships

Given the increasing complexity faced by insurers, many will choose to partner with companies, rather than develop capabilities in-house.

Regulation as a strategic business input

Insurers should consider regulatory shifts as an opportunity to focus profits and drive growth, rather than a tactical measure that needs to be completed.

Harmonization of risk technology

There is a growing trend toward harmonizing platforms and software systems, not only in the front lines but also for reporting and business intelligence.

To learn more, download The Changing Face of Risk Management.

Michael Costonis

About Michael Costonis

Michael Costonis is Managing Director of Accenture’s Insurance practice for North America. He is responsible for setting the overall vision and strategy for the practice, as well as pursuing new client relationships.

Costonis has twenty years experience developing, managing and deploying large scale technology systems, business processes, and strategies for some of the world’s leading insurers, including property & casualty, life, and multi-line insurance companies. In his career with Accenture, he has worked with more than 50 leading insurance clients in 14 countries around the world.

In addition to his role as North America industry executive director, Costonis is the lead for Accenture’s global claims services. In that role, he oversees claims strategies, assets, capabilities, and sales development. He also has led Accenture’s Insurance Solutions practice in North America, where he was responsible for driving growth for Accenture’s asset-based business in Insurance, including claims, underwriting, and policy administration.

Costonis has authored several articles in leading insurance trade publications, and has been quoted in The New York Times, Bloomberg News, Reuters News, Best’s Review, Insurance & Technology, InformationWeek, National Underwriter, Technology Decisions, and the Philadelphia Inquirer. He has spoken at several leading industry conferences in the U.S. and internationally.

Costonis received a bachelor’s degree in political science from Swarthmore College (Swarthmore, PA). He is based in Philadelphia.

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