What is your background and how did you get into risk management?
Andrew Cornish: Like many people I got into risk management slightly by accident! I took a degree in biological sciences and, when I was looking for a job, saw that a number of insurance companies were advertising for science graduates to go into graduate training programmes for fire surveyors. I joined what was then Guardian Royal Exchange on a graduate training fire surveyor course and stayed with them for six years, learning about risk engineering. I then moved to the broking firm Sedgwick and broadened my risk engineering background by dealing with other areas of risk management. Following that, I joined Sainsbury as insurance and risk manager. I was there for about eight years, once again broadening my experience dealing with risk management and corporate governance issues. I then moved to Colt Telecom where probably only 30% of my time was taken up with insurance matters, the remainder being spent on focusing on business risks and corporate governance. Very recently I joined Centrica as head of insurable risk. As the title implies, I am now focusing much more on insurance and risk financing areas.
How did you get involved in AIRMIC?
Andrew Cornish: I first became involved with AIRMIC when I was with Sainsbury and AIRMIC asked me to chair and revitalise the retailers special interest group in partnership with several other risk managers. The group took off and that kick-started my involvement with AIRMIC.
What do you see as the key issues facing AIRMIC members at present?
Andrew Cornish: The current high profile issue is FSA regulation and whether this will affect risk managers. On the insurance and risk management side there are still significant issues for virtually everyone in respect of directors and officers liability and for some sectors around errors and omissions and professional indemnity.
In broad terms the 'old chestnuts' are still there to some extent - issues around transparency from brokers and efficiency and documentation from insurers. I think those are still key problems.
On the business risk side, corporate governance and related areas are growing. For many companies, complying with the Sarbanes-Oxley ACT and implementing the necessary systems and processes required under section 404 are costing a lot of time and money. In terms of corporate governance Europe is moving in the same direction so it looks as though even those companies that do not have a US listing and don't have to conform with Sarbanes Oxley will be in the same position in a few years. Becoming involved in developing the necessary process mapping and the controls around those processes is an additional challenge for many risk managers.
How do you envisage AIRMIC helping its members in the current environment?
Andrew Cornish: AIRMIC has done a very good job in helping its members throughout the last few years and has had some major successes. I believe that it will continue to do so in many of the same types of ways - through lobbying, direct involvement in driving particular issues that arise, and innovating. For example, developing the risk management standard with IRM and ALARM was of great value.
AIRMIC also needs to get even better at helping to provide members with opportunities for networking and exchanging information, like this conference, our seminars and regional meetings around the UK, and to continue to use its web site and e-mail to keep people up to date.
Why do you think it's important that risk managers should support AIRMIC?
Andrew Cornish: Any organisation which is member driven will only be successful if the members get involved and support it. AIRMIC provides the best focus for risk managers and others in the risk management community to share information and ideas and to innovate. This two-way flow of ideas can help people think 'out of the box' and share views with people who understand their perspective which may not be possible in their own business organisations.
In order for AIRMIC to continue to grow stronger and react to new circumstances, it relies upon the support of its members. It needs innovative people who want to drive risk management forward.
Should AIRMIC admit members who are not acting risk managers?
Andrew Cornish: We have now agreed the criteria for the new class of affiliate members and hope fairly soon to have a small number of affiliates - people who can contribute intellectual capital and who have supported us in the past. It's good to admit some affiliates from insurers, brokers, solicitors, etc, as a way of broadening our base slightly, but I don't think that it is a core part of our strategy to admit members who are not acting as risk managers. I believe that AIRMIC can be the focal point for the risk management community, working and interacting with other members of that community, without having to change its membership criteria.
Why did you choose your theme and what will you be trying to achieve during your year as chairman?
Andrew Cornish: My theme centres around progress and partnership. In terms of progress, I believe AIRMIC has done well over the last five years or more. Risk management is now on the boardroom agenda and is seen as a key part of running businesses. That has been achieved. But AIRMIC needs to continue to change and progress, it must not stand still, and that progress needs to involve, as I said earlier, being at the centre of the risk management community, a catalyst for driving risk management forward. Partnership means working in different and more transparent ways with other companies and consultancies in the risk management community and in partnership with organisations like IRM and ALARM.
I don't think all of this can be done in a year! I will be trying to drive these things forward and to develop new initiatives where we can grow in this way.
You have recently taken on a new position with Centrica. Are there any particular challenges involved with this?
Andrew Cornish: Centrica is a particularly interesting and vibrant business which is growing and changing a great deal. It is an organisation with very diffuse insurable risks such as offshore gas platforms and US power stations - a whole raft of different types of business areas. There are huge challenges.
It can be difficult to juggle the demands of a new job with the requirements of a chairman's role. How do you plan to balance the two?
Andrew Cornish: AIRMIC is a well structured organisation with an excellent staff which we are looking to grow. Yes, it will be a juggling exercise but I have gone into it with my eyes open. My employers are aware and supportive of what I am doing. And after all, I think that juggling is part of the enjoyment of being in business!
