Strategic Risk Forum live blog

4:20pm - Panel discussion: Managing reputation risk

In room 2, Brian West, global managing director, crisis and issues management at FleishmanHillard, and Leesa Soulodre, managing partner at RL Expert, join John Ludlow on the panel. They will be discussing how companies can identify and prioritise reputation risk; the challenges of embedding reputation risk management into an organisation and business planning; and how to respond to a reputation event. 

4:00pm - Reputation resilience: trust in the corporate brand experience and communication

Ahead of the panel discussion in room 2, John Ludlow, senior advisor at Alvarez and Marsal, gives a presentation on reputation resilience.

4:00pm - Panel discussion: Responding to a crisis and building resilience

The panellists in room 1 are Fuad Sharuji, crisis director, MH370 and MH17 at Malaysia Airlines; Paul Clarke, global head of change - risk and compliance at Platts/McGraw Hill Financial; and David Guest, crisi management leader, Asia Pacific at XL Catlin. They will be discussing at what point an incident becomes a crisis; what a business should prioritise during a time of crisis, and what the risk manager’s role is during a crisis.

4:00pm - Panel discussions on crisis management and reputation risk

The last panel discussions of the day focus on crisis management and reputation risk.

2:30pm - Panel discussion: understanding measuring and managing people risk

In room 2, Syed Ali Abbas, former chief human resources officer at Telstra/Pacnet, Dhritiman Chakrabarti, managing director - rewards, talent and communication (Asia Pacific) at Willis Towers Watson and Marc Breuil, regional president Asia at Berkshire Hathaway Specialty Insurance discuss how the risk and HR functions should partner in strategic planning; what challenges companies are facing in delivering their workforce plan; and how corporates are attracting attraction and retention strategies. 

2:30pm - Panel discussion: developing a truly practical cyber risk management programme

In room 1, David Siah, country manager, Singapore at Trend Micro, Christophe Durand, head of cyber strategy at Interpol and Geetha Kanagasingam, vice president UK, Europe & APAC, group insurance and group risk at Barclays Bank discuss how to identify and prioritise cyber risks; what some of the practical challenges of implementing a cyber risk programme; and how the insurance market can support corporates manage and mitigate this risk.

2:15pm - What are the people risks companies face now and in the future?

In room 2, a presentation by Syed Ali Abbas, former chief human resources officer at Telstra/Pacnet looks at the wide range of people risks companies face.

2:15pm - The latest cyber risk threats and vulnerabilities

Christroph Durand, head of cyber strategy at Interpol, gives an overview of the latest cyber threats and vulnerabilities in room 1. 

2:15pm - Panel discussions on cyber risk and people risk

Following lunch, the room used for the plenary sessions in the morning has been split in two, as two panel discussions will run simultanously. The afternoon kicks off with panel discussions on cyber risk and people risk.

1:09pm - The connectivity of supply chain risk

“Different people/departments can be looking at different aspects of the risk through a different lens. Connecting those silos in your business is therefore very important,” Karim says.

1:01pm - The connectivity of supply chain risk 

In order to manage this risk, risk managers need to know the physical location of their suppliers, Karim says. In case of a natural catastrophe for example, the back-up shouldn’t be located in the same area as the original supplier.

12:56pm - The connectivity of supply chain risk

The survey also found that 72% of firms don’t have full visibility of their supply chains. “Some issues, like forced or child labour, often happen at lower-tier suppliers, which the company at the end of the supply chain might not be aware of. But when this comes out in the media, it’s the big company that faces reputational damage, not the small supplier,” Karim says.

12:52pm - The connectivity of supply chain risk

Supply chains are multi-tier and at 29% of the companies surveyed in Zurich’s survey disruptions happened below the first tier, ie their direct suppliers.

12:50pm - The connectivity of supply chain risk

Zurich’s latest business continuity survey found the top three causes of supply chain disruption were IT & telecoms outage, cyber attack and adverse weather, Karim says.

12:45pm - The connectivity of supply chain risk

Hassan Karim, head of proposition at Zurich, says supply chain is one of the key risks facing businesses. ”It is an important topic now, because we had a move to global sourcing, we have strategic suppliers – it is now more cost effective to have one supplier rather than several – and we have moved to just-in-time manufacturing.So if there is a disruption in that supply, it can really disrupt a manufacturing organisation,” Karim says.

12:37pm - Case study: responding and recovering from the Malaysia Airlines crises

The key lesson that Sharuji has learned from these events is that airlines must always be prepared. “We cannot be prepared for every single conceivable scenario but you have to be prepared to react to any given situation,” he says. The importance of good government relations is also a key takeaway for Sharuji. “My next step is actually trying to work very closely with the government in helping them bridge the gaps that we had before. That is to me the most important thing in my wish list right now – to bridge a gap that we have in the crisis management programme between us and the authorities,” he says.

12:26pm - Case study: responding and recovering from the Malaysia Airlines crises

Overall, Sharuji says he was “very happy” with how his emergency response teams reacted to both crises. “We made a few mistakes here and there and we corrected those mistakes almost immediately. But, on the whole, we handled the two crises extremely well,” he says.

12:17pm - Case study: responding and recovering from the Malaysia Airlines crises

The certainty of what happened to MH17 made the second crisis “much easier” for Sharuji and his team to handle from a crisis management perspective. That, and the efficiencies of the Dutch government’s response plans, Sharuji says. “I want to put on record my appreciation to all of the governments involved in MH17, in particular to the Dutch Safety Board,” he says. “I also want to thank the Chinese government and the Australian government who helped us on the search for MH370. And, of course, the Malaysian government as well who helped us in the search and rescue effort.”

 12:12pm - Case study: responding and recovering from the Malaysia Airlines crises

More on MH370: “We also lost our friends and relatives on board the flight, we lost the aircraft, we lost our business, we lost our reputation; we lost a lot. So we also want to know where the aircraft is, we want to know why it happened. We want to know what went wrong, we want to know who is behind all of this; we are just like them.”

12:07pm - Case study: responding and recovering from the Malaysia Airlines crises

Sharuji says: “You cannot be prepared for every single conceivable scenario but you have to be prepared to react to any given situation.” Regarding MH370: “We tried to respond to every single thing that we heard and every time we relayed that to the RCC – the rescue command centre – run by the government,” Sharuji says. But it seems the communication was not two-way. “From the public’s perspective they thought that there was a lot of cover-up and we were withholding information, which is actually not true because we also didn’t know,” he explains.

12:00pm - Case study: responding and recovering from the Malaysia Airlines crises

Our midday session is a keenly anticipated case study on responding and recovering from a crisis by crisis director for MH370 and MH17 and head of the Malaysia Airlines post accident office, Fuad Sharuji. Sharuji is giving an overview of these air disasters, touching upon the issues of crisis team structure and management, crisis communication and media handling, and the involvement of government and code-share partners.

11:04am - Panel discussion: managing risk in competitve, connected and disruptive environments

Another live question from the audience. “Which area of the insurance industry would be most impacted by the Internet of Things?” It has been suggested that general insurance might feel greater impact than personal insurance.

10:57am - Panel discussion: managing risk in competitive, connected and disruptive environments

Question from the audience being discussed by the panel: “How relevant is the role of Chief Disruption Officer?” The general consensus seems to be that identifying someone to be accountable for things such as ethics, investigation and dealing with disruption is important, but having “roles just for the sake of roles” is unnecessary.

10:50am - Panel discussion: managing risk in competitive, connected and disruptive environments

Interesting question from the audience: “Do you believe the internet will become impossible to trade on due to cyber crime, which is becoming super sophisticated?”

10:45am - Panel discussion: managing risk in competitive, connected and disruptive environments

The audience is voting on the following issue. “When it comes to risk transfer/insurance, innovation will be led by…” Results so far: Clients 65%; Insurers 18%; None of the above/something else 10%; Brokers 6%.

10:42am - Panel discussion: managing risk in competitive, connected and disruptive environments

The participants are busy identifying disruptive trends and predicting tomorrow’s strategic risks. Issues being covered include the management of changing workforce skill requirements and how risk managers can drive strategic change.

10:38am - Panel discussion: managing risk in competitive, connected and disruptive environments

The panel is in general agreement that the Internet of Things is the technology/advancement that will have the greatest impact on business in the next two years. It was also the top pick of about the half the audience, with increasing automation and robotics chosen by about a third of the audience, and the remainder opting for artificial intelligence/virtual reality or 3D printing.

10:30am - Panel discussion: managing risk in competitive, connected and disruptive environments

The first panel discussion of the day is focussing on managing risk in competitive, connected and disruptive environments. Participants are Senthil Ramani, director, Accenture /EDB, Internet of Things, Center of Excellence; Roy Wilmoth, head of casualty, Asia Pacific, AIG; and Gordon Song, head of risk and audit, Lazada Group. It is being chaired by StrategicRISK Asia-Pacific editor Jessica Reid.

10:25am - The industrial Internet of Things: how the fourth industrial revolution will impact business in Asia-Pacific

Companies need to follow five steps to prepare for the fourth industrial revolution:

• Build your digital strategy
• Make structural differences. Substitution doesn’t help. For example, rather than just replacing your paper archive with a digital version, opt for structural change
• Revolutionise by taking an outcome-led approach to products/services. Go beyond just monetising to build a ‘skin in the game’ approach
• Partnerships are important because we know individual companies can’t do this by themselves. Inorganic is the new normal but you have to choose your partners carefully
• Nurture or find the right talent as there is a silent transformation going on; new roles continue to emerge, e.g. digital officer, ethics and security officers

10:16am - The industrial Internet of Things: how the fourth industrial revolution will impact business in Asia-Pacific

Ramani sees five key trends for risk managers:

• The definition of the risk landscape has broadened and has become more complex and diverse
• The workforce will become more liquid. By 2020, 43% of the US workforce is going to be liquid
• According to 82% of companies, platforms will be the ‘glue’ that will bring organisations together in the digital economy. Companies will need to create their distinctive digital identity to stand out on platforms
• Predictable disruption where companies need to go horizontal to identify the coalition or ‘adjacent’ industries and partner with them. In the insurance industry, 44% of insurers want to pursue digital initiative partners outside insurance
• Digital trust is essential. “Ethics and security are the cornerstones of addressing digital trust,” Ramani says

10:07am - The industrial Internet of Things: how the fourth industrial revolution will impact business in Asia-Pacific

“The Internet of Things is not just about the hardware, but also about what you can do with the data and how you can use that for your risk management function,” Ramani says.

10:06am - The industrial Internet of Things: how the fourth industrial revolution will impact business in Asia-Pacific

In today’s interconnected world, risk managers have to believe that there is information you can trust. “It is essential for risk officers that they have the right information at the right time, and the Internet of Things can enable that,” Ramani says.

10:04am - The industrial Internet of Things: how the fourth industrial revolution will impact business in Asia-Pacific

The Internet of Things can help with companies’ top line agenda, with operational efficiency and with improving and safeguarding their reputation and brand, Ramani says. “It is not just about its relevance to the financial industry or insurance, but also to retail and in the entire industrial context.”

10:00am - The industrial Internet of Things: how the fourth industrial revolution will impact business in Asia-Pacific

This morning’s second presentation is on the industrial Internet of Things. Senthil Ramani, director at the Internet of Things Center for Excellence at Accenture and the Economic Development Board. 

9:48am - Keynote presentation: strategic risk leadership

Ludlow finishes his presentation by challenging the audience: Are you ready to talk to the board about the business model? Will you champion better management the intangible capitals? Can you do this on your own? 

9:41am - Keynote presentation: strategic risk leadership

“Public opinion now holds great sway on the value of businesses,” Ludlow says. 

9:39am - Keynote presentation: strategic risk leadership

Ludlow points out that the economy has evolved from raw materials, through to production of goods, to services, to experiences. You have to drive forward and differentiate all the time, he says, through, for example, brand experiences. “Brands are targeting consumer emotions,” he points out.

9:34am - Keynote presentation: strategic risk leadership

“When you’re talking to the board it’s important to understand that directors direct and managers manage. Guys in the business are making operational decisions, but the board are thinking strategically about things. They are thinking longer term.” Ludlow says that “the executive guys are up to their eyes in detail”, while non-executives are concerned with the long-term interest of the majority of stakeholders. “The board owns the business model,” he argues. “They are the stewards and owners of the capitals.”

9:27am - Keynote presentation: strategic risk leadership

“The chief risk officer job is one of the toughest jobs I know,” Ludlow says. You need courage, you need to be able to communicate effectively, you need to be a guardian of standards and ethics, and you need humility, he adds.  A risk manager who reaches out when things are going wrong and helps other leaders will build credibility and respect. “No-one is going to listen to you unless they respect you.”

9:21am - Keynote presentation: strategic risk leadership

Ludlow tells the audience that mature leadership is central to effective risk management. Leaders can all too often be selfish, but mature leaders worry about stakeholders first, and the rest will take care of itself. An effective risk leader needs superb executive leadership skills, he points out. “The risk manager needs to become a cultural leader in their business,” he says. “They need to be a champion and guardian of risk culture.”

9:15am - Keynote presentation: Strategic risk leadership

The keynote presentation is on strategic risk leadership, and our speaker is John Ludlow, senior advisor, Alvarez and Marsal, former global head of risk management, InterContinental Hotels Group and StrategicRISK’s European risk manager of the year 2012.

9:05am - Findings from StrategicRISK’s Asia Risk Report 2015

Setting the scene for today’s conference, StrategicRISK editor Jessica Reid talks through the top 10 risks that came out of the research for the Asia Risk Report 2015.

Today’s debate and discussions will touch upon a lot of these issues, and delegates can expect insightful sessions on topics including people risk, reputation risk, cyber risk, and failure to innovate.

9:00am - Welcome address

The Strategic Risk Forum kicks off at the Intercontinental Hotel in Singapore. Publisher Will Sanders and editor Jessica Reid welcome over 200 risk and insurance professionals at the third annual event.