Managing risk in a challenging economy

Paul Collins, AVP, corporate risk engineering manager, Allied World

Despite the most recent forecasts from the Bank of England being more positive than in the past five years, and the outgoing governor, Mervyn King, proclaiming there is “a modest recovery ahead”, many businesses are still facing tough times. They are still looking to manage their costs by either reducing headcount and/or closing sites. However, this is not a strategy without risks since this might result in an increased exposure to unforeseen risks associated with poor project management and a potential increase in personal injury and other claims. Consequently, the associated insured and uninsured costs can significantly affect any savings.