Risk Consulting, issue 1/2017

If's risk management journal

The robots are coming

Extreme weather, terrorism , unmanned ships and catastrophic events.  It is increasingly clear that change has become a constant, and that there is thus a greater need than ever before to focus more closely on issues pertaining to risk management.

It is crucial to keep track of vulnerable assets in a business environment characterized by constant flux, and which is becoming increasingly computerized and complex.

We collaborate with our clients throughout the risk management process, and our versatile team of experts, with offices throughout the Nordic region, offers support, expertise and tools. As an insurance company, we must also change the way in which we work. Internally, we have established If Tech Lab, which allows us to move swiftly in order to take advantage of technological developments.

Here, we test and develop digital technologies which are beneficial to both us and our clients. One of the concrete results of our efforts has been the creation of better and more comprehensive risk management tools for client use.

Thus far, inspections have been carried out by a real live risk engineer. But who knows? In a few years' time, a robotic colleague may be accompanying If's risk engineer on survey visits...
Happy reading!

Poul Steffensen
Head of BA Industrial, If

Close collaboration decisive after major fire

How do you rebuild a business when the unthinkable happens? The forestry group Holmen and If had to display both strong collaborative skills and ingenuity when a fire had ravaged one of the group's paper mills.

What would prove to be one of If's biggest ever claims in recent years began on a perfectly normal Friday afternoon in November 2015. Just after 6 pm the emergency services received the alarm – a fire had started in the Hallsta paper mill to the north of Norrtälje. It spread quickly, and although the emergency services managed to put out the fire in one and a half hours, the damage was extensive. Read the whole article

Photo: Holmen/Lasse Hejdenberg

The do's and don'ts in recall management

Learning that your product may cause injuries or damage is a stressful situation. It damages normal business and may affect the company's reputation and endanger future earnings and value. But, it is possible to prepare for it and take control of the needed measures, in a professional way.

There are many measures companies can take to mitigate risks related to product liability and recall. Compliance with regulations is essential but the responsibility for product quality and related risks ultimately lies with the company itself. A crisis calls for quick and appropriate actions, based on a well-designed and tested plan.
Read the whole article

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Autonomous ships - fact or fiction?

Autonomous ships are a new frontier. Driverless car technology is at an advanced stage, with major companies such as Google, Tesla, Ford, General Motors and Nissan paving the way. For quite some time, Volvo has been testing driverless cars on public highways in Gothenburg, in conjunction with the Swedish authorities.

In the field of transportation, autonomous (or unmanned) ships have been and still are being intensely debated. It is virtually on the agenda of almost all transport related seminars. As with all technical developments, there will inevitably be ascribing risks. From an insurer's perspective, it is new territory and these new risks difficult to assess and grasp.

Autonomous ships are a new frontier for the insurance and legal communities. Many questions remain unanswered. For instance, if there is no shipmaster on board, who can be held liable if something goes wrong? Will autonomous ships become a reality or remain fiction? Read the whole article

The catastrofic claim

How will your business be affected?
What will happen if you are hit by a major flood, storm or some other severe natural event What if your clients or your most important suppliers are affected?

During the flood in Thailand, in 2011, large areas of industrial compounds were, more or less, inaccessible. What if your key suppliers are located in such an area? Are you prepared and how will your business be affected? In what seems to be an evermore deteriorating climate situation, where storms, floods, heavy rains and the like are increasingly frequent, it is well worth spending some time to consider how you may prepare yourself and your business for such a scenario.

You will, of course, have the most influence over your own facility; but, even here, you cannot fully avoid being hit by, let us say, a flood. If you are at risk of being affected by a flood, you can prepare for it in order to minimize the effects. Read the whole article

How do you protect yourself from terrorism?

Terror attacks are hard to predict, but terrorist expert Hans Brun does have a couple of tips to companies and industries that want to protect their businesses.
Read the whole article

Climate change adaptation

Climate change is expected to have serious impacts on housing and infrastructure. No Swedish national strategy yet exists to facilitate the planning required to act upon it. The Swedish Geotechnical Institute (SGI) has, therefore, developed an action plan for adaptation of land use and ground constructions in the built environment.

Adaptation to climate change, particularly flood risks, may come to pose large challenges, in the future, and will require cooperation among a range of stakeholders. The new action plan, for managing ground conditions in the changing climate, proposes a framework for delivering adaptation action, at all community levels: national, regional and local. Read the whole article

Impacts and threats of climate change

During the last decade, the increase in weather-related risks, global warming and climate
change have become major issues in public debate and have impacted public decision-making. Read the whole article

Class actions without losses: a challenging US trend

There is a growing trend in the US that first puts a relieved smile, but then a troubled frown on the faces of liability insurers.

It relates to class actions. Class actions? Smile? Yes, because this type of action does not involve claims for actual property damage, personal injury or even economic loss suffered by the plaintiffs themselves, which means it is not usually covered by liability insurance. Read the whole article

Fire hazard management for unified fire brigades

Four basic steps towards better management of fire risks.

Fire hazard management is an important part of a safety management system. The term is used to mean an integrated facility approach to reducing risk from fires and explosions, by the most appropriate means, for a particular facility. The integrated approach means considering the design, plant layout, prevention measures, incident detection, protection systems, mobile equipment, training, etcetera.
Read the whole article

Risk Consulting 1/2017

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