Swedish risk managers prepare for new and emerging risks

As businesses within the Eurozone have been repeatedly buffeted by crisis after crisis against a backdrop of low growth and recession over the last eight years, Sweden has been sailing around the periphery on far calmer waters.

“The Swedish economy is strong in comparison to the Eurozone in general,” says Fredrik Finnman Group Risk & Insurance Manager at the world’s largest lock manufacturer, ASSA ABLOY AB, and outgoing president of SWERMA.

“However, as Sweden is an export dependent country with a large number of multinationals the Eurozone crisis has had an influence on the demand for Swedish products.”

But while conditions may have been challenging at times, Swedish exports have not suffered in the same ways as those from within the Eurozone due to relative currency values and Sweden’s ability to manage its own currency.

“As the Swedish Crona has weakened, Swedish products have become cheaper for our customers to buy, and this has somewhat mitigated the effects lower demand from the Eurozone,” says Finnman.

“Sweden’s industry has a long history of global export and foreign partnerships.

“Our industry are known for being flexible and innovative so I believe lower demand from Europe is mitigated through innovation, cost efficiency and by focusing on other markets.”

But just because economic conditions have been more benevolent, Sweden is still part of the global economy and risk managers there have had to find new ways to address the evolving risks associated with this. “Apart from the more tangible items such as supply chain risk I believe more companies now see increased exposure from cyber related events,” says Finnman. “The Internet of Things is definitely starting to change the risk landscape, but exactly how is still very hard to predict.

“While I believe that risk managers in general have limited influence on key business decisions however they do actively take part in the internal risk management process and as such help their company to respond in the most appropriate way.

“The success in risk management is strongly related to embedding it into the everyday business of the organization. Without a sound knowledge of the internal business and an active interface to key internal stakeholders, risk management will be no more than a policy document.

“I’m very proud of the professionalism among fellow risk managers in Sweden.

“Their professionalism is partly due to a strong risk culture in our industry, support from senior management but also due to sound knowledge and expertise.

“Future risk managers will still need to have a holistic view of risk and develop interface to various experts within their organization in order to include the entire scope of risk.”

But all risk managers depend on the support of a responsive insurance market to provide the protection they need, and it’s here again that Finnman believes that his country’s strong risk culture is making the market very attractive to insurers. “Capacity is readily available as is local mandates and professional claims management,” he says. “However, insurers are still not contributing enough on prevention of liability losses.

“They could take much more active part by making their loss data available to customers and by giving them the appropriate support to guide them through the claims process.”