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[...] According to Airmic’s chief executive, John Hurrell, members have been employing basic risk management techniques to help their organisations manage Brexit risks.
“Risk and insurance managers clearly have a role to play in Brexit on issues related to insurable risk, such as health and safety, credit and political risk, environmental liability, cyber and supply chain. But when it comes to corporate strategy and wider crisis management, this is often not the case,” he told CRE ahead of this year’s annual Airmic conference in Birmingham.
Brexit is another example of the need for an integrated approach to risk, according to Mr Hurrell. However, Brexit has not seen Airmic members elevated within their organisations.
“Feedback from members is that Brexit is a risk that is high up on the board agenda, but that boards see the role of risk managers as being focused on insurable risk and not strategic risk,” said Mr Hurrell.
“Brexit has not created a platform for our members to break out of their traditional roles and to consider risk in the broader context. While our members have been involved in the process, few, if any, will lead it. A number of our members have an increased profile, but Brexit has not been a trigger to get even more involved,” he added.
Broker and risk management consultant Marsh has also seen risk and insurance managers focus more on insurable Brexit risks rather than strategic issues.
Brexit will impact companies in different ways, depending on the sector in which they operate and their business model. For some, it may be an opportunity and for others a big risk.
There are also concerns over the impact of Brexit on the UK labour market. Many sectors – such as health, technology, biotech, food and agriculture and financial institutions – currently benefit from the freedom of movement for talent and labour.
One of the big challenges of Brexit will be ongoing uncertainty in key areas such as future regulation, trade and freedom of movement, according to Mr Beresford-Davies. There is also the risk that the UK will leave the EU without any deal, he said.
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