Future of risk management in Asia

The ability to differentiate risk management from compliance and governance is an ongoing issue facing companies throughout Asia in 2015 and beyond.

“The credibility and the right positioning of risk managers in order to enhance their footprint and scope of responsibilities is an ongoing challenge,” Franck Baron, Group General Manager Risk Management & Insurance - International SOS and Chairman - Pan-Asia Risk & Insurance Management Association (PARIMA), said.

“That and the ability to support the risk management needs in corporations and even more sophisticated risk financing expertise will be constant challenges.”

Baron has extensive experience in the field having held the positions of Head of Business Development Europe for Risk Consulting services at AXA from August 2009 to September 2011.

Previous to that he was Vice President Global Insurance & Risk Management of FIRMENICH (Geneva) from November 2003 to June 2009.

Baron believes duty of care responsibilities will play a big part in the role of risk managers in Asia this year and beyond.

“Duty of Care refers to the legal and moral responsibilities that employers have to their employees, contractors, volunteers and their dependents when they are working or posted on international assignments or working in remote areas of their home country,” Baron said.

“Organizations could be exposed to costs of a trip or assignment being disrupted or cut short; impact on business continuity in the event of an incident, costs of care and evacuation for an emergency that might have been avoided and risk of prosecution under occupational health and safety legislation, or a claim for damages.

“That being said there are also plenty of benefits too such as improved CSR reputation, better trained and prepared workforce, avoidance of costly incidents, greater legal compliance, avoidance of litigation, maintenance of employee well-being, improved productivity and morale along with increased ability to attract and retain employees.”

Other challenges facing the Asian market in 2015 including the shortage of talent available, which includes fluctuating employment markets and the ability to retain skilled employees along with the positioning of risk offers.

“There are different challenges in local and global markets,” Baron said.

As for the objectives of PARIMA this year, Baron aims to launch local branches in Singapore, Malaysia, Philippines, Vietnam, Hong Kong, China and Taiwan.

“This will provide further relevancy and support to the local communities of risk managers in the countries,” he said. “As well as kick-off of our education and professional certification initiatives, which will bide well with our development of our partnership and engagement with the insurance industry.”

The PARIMA 2015 conference will be held in Singapore in November.