The financial crisis drew attention to the importance of risk management, and firms understand the crucial role risk management plays. Chief Risk Officers often serve now as part of the executive leadership team, and are typically involved in key business decisions.
The Accenture 2013 Global Risk Management Study identified a trend toward the integration of risk management into strategic processes and into areas outside its traditional scope, such as product development and pricing. Such integration, however, tend to be slower among insurers. While some insurers’ risk management functions report a high degree of integration, many insurers are still in the process of integrating risk within their product development and innovation processes.
Taking into account the data presented above and the findings from the full report, my next blog post will offer a useful model that can encourage insurers to incorporate risk management tools into their strategic planning.