KEEPING YOU SAFE
Indwe Risk Services
Without risk businesses would not be able to thrive. High risk decisions are made every day and there are never any “sure things” in today’s unpredictable business playing field. Risk is acknowledged but not flaunted, and is sometimes mistaken for gambling. Management of that risk becomes important as it gives comfort to shareholders, customers and employees. More importantly, a business that is effectively managed can confirm its compliance with corporate governance requirements when it comes to risk and risk-standards. In a nutshell, risk is the difference between what is expected to happen and what actually transpires; managing this difference is the process
of identifying the risks to which a certain organization is exposed and evaluating them in terms of how often they may occur and how serious the impact may be. Once you know what the potentials are, the best way to manage them is determined in a scientific and proactive method; there are few companies that approach this better than Indwe Risk Services. Peter Olyott, managing director, has been in the industry for over two decades and is leading Indwe through the latest batch of “new regulations, new legislations and new risks.” Where others may see problems, he sees only opportunity: “change is inevitable and good for those who know what to look for and can adapt.” The company is unique as it is 100% South African, working with South Africans and for the South African market; it is also the largest composite broker in the country. “It’s a people business,” he explains, “it’s important that everything we do is with people. To ensure our employee standards are at the highest we offer a graduate trainee program during which they spend a full year as an intern and another in training before being sent to their respective branches.” Effective risk
Indwe Risk Services
management is used to underpin the strategy of an organization and, if used effectively, it provides the organization with a level of competitive advantage; if applied poorly or incorrectly it may have the precise opposite effect. Businesses are vulnerable to a range of threats, which can change unexpectedly, and, as the world becomes ever more connected, the dependency of companies on each
other increases exponentially. This means that a change in one will have a knock on effect on another and it is up to the management of each company to effectively manage the risks to which they may find themselves and their company exposed. “Risk affects everything,” Peter says. “Public and private organizations of every size and location. And the management of it is the bosses’ responsibility. They need to put an effective and clear programme in place that the employees can follow.” This programme needs to support accountability, performance measurement and reward, thus promoting efficiency at all levels. Risk is characterized by a degree of uncertainty. Whenever there is certainty as to what may happen and how often it may happen, the risk reduces. Conversely, where there is a high degree of uncertainty as to both the severity and frequency, the risk increases. Management is not a matter of being beneficial but of being vital. It’s important to understand that effective risk management can lower the risk of unexpected and unpleasant surprises. Because it is a management programme, it does not take effect overnight as it involves the movement and organization of people; “from onset the chances of problems diminish.” Also, if risk is managed effectively it means the company can gain an advantage over its competitors. Effective risk management allows faster economical recovery should the
Auto & General provides car, home, buildings and business insurance and has been around for over 27 years. Auto & General strives to provide the best cover to suit all your insurance needs and couple that with superior service excellence as per our industry first Service Charter. We provide an array of products and benefits that are sure to enhance your cover and protect you from unforeseen circumstances.
worst happen. Finally, a particular risk is often created in terms of law and an effective risk management programme allows companies to operate successfully and comply with the laws to which they are subject to. Insurance is, after all, about managing and preparing for the future. When a business adopts this sort of philosophy it is destined to benefit from such a course. It creates a safer working environment for employees, a more sustainable future and a stronger foundation. The future of risk management is looking increasingly complex. Global market dynamics continue, technological changes abound, environmental risk becomes more complex, and new dimensions of social risks are coming to the fore, all of this resulting in a rapidly evolving risk management landscape. Risk and compliance functions have certainly become even more critical and complex. Most companies are reviewing their current and future state compliance blueprints. An example could be legal and reputation risks in using social media like blogs and Facebook, Twitter or the cross border legal risks in international online shopping portals. The strength of Indwe Risk Services comes from its strong, highly experienced and focused leadership, its enduring and trusted relationships, personal skills, face-toface consultations and a drive for improvement and finetuning corporate and commercial solutions.
Indwe Risk Services www.indwerisk.co.za +27 12 47111 007 Written by Jack Slater
Published on Aug 5, 2012