Managing risk crucial to surviving recession

Marsh launched a report highlighting the key risks companies face as the global economy slows and advice about how to tackle them.

The report highlights issues around capital management, liability and trading risks, addressing the key concerns it sees in each category.

Among its recommendations, the report highlights the value of risk finance optimisation and the benefits of trade credit insurance. It also identifies measures to help manage cash flow, supply chain risk, self insurance, business resilience, directors’ and officers’ liability and litigation risks.

Launching the report, David Batchelor, CEO of Marsh in Europe, the Middle East and Africa, said: ‘The global credit crunch and deteriorating global economic conditions have understandably dominated the headlines, but there are other dynamics carrying just as significant consequences for European business. They include such risk issues as terrorism, climate change, energy volatility, and the emergence of the BRIC countries (Brazil, Russia, India, China) and other parts of Asia and the Middle East as the world’s future economic powerhouses.’

He added: ‘This shift in economic power will have important consequences for labour and skills, socio-political pressures and global supply chains and trade. The topics addressed in this report provide guidance and advice in the management of risk. While preparing their companies for the coming twelve months, prudent leaders will be taking action around risk mitigation to strengthen their firm’s ability to succeed in this volatile global environment.’