Insight from our experts

Risk management techniques to build business resilience.


Chris Lay, CEO, UK National, Marsh Ltd - risk and insurance advisors - discusses risk management techniques to build business resilience.

Chris Lay
Quick Facts Name: Chris Lay
Company: Marsh Ltd
Position: CEO, UK National

In the current economic environment many historic assumptions about business stability are being questioned and many risk factors such as labour unrest (across the world), supplier liquidity, customer default, fraud and directors' liabilities are changing rapidly.

How can your business react? Marsh believes that by applying risk management techniques businesses can reduce volatility and build resilience into their operations. This approach can help businesses to trade through these difficult market conditions, increase stakeholder confidence and reduce costs.

Forward looking businesses should consider the following actions:

  • Update your risk profile and risk control mechanisms to reflect changing areas and levels of risk.
  • Revisit your contingency plans to ensure they reflect scenarios such as loss of a key supplier or customer, or intervention by a foreign government.
  • Re-examine your insurance and risk financing options to ensure you are still getting proper protection at best cost. Redesigning your programme to reflect changes in your business environment may save you money.
  • Review the levels of insurance protection you are buying for directors, especially if you have exposures in the US.
  • Evaluate your trade credit exposures and credit management procedures.
  • Ramp up your supplier management to identify vulnerabilities and reduce dependencies.
  • Redesign products to better meet changing customer demand.
  • Manage fuel costs to protect margins.
  • Understand and manage the risks in business restructuring.
  • Seek early help from corporate recovery experts if your business is in difficulties.

In order to provide you with more detail on this subject, our detailed Executive Briefing can be downloaded here*.

Marsh Ltd is authorised and regulated by the Financial Services Authority for insurance mediation activities only

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