A survey released this week showed an interesting disconnect between companies’ top executives and their risk managers on the risks facing their companies as they expand internationally.
Among its findings, the 2007 Chubb International Risk Survey reports that 43% of C-level executives surveyed said international risks pose a greater threat to their companies than domestic risks. Meanwhile, only 16% of risk manager respondents saw a greater threat from international exposures than those at home.
They also had different points of view on the top risk facing their multinational operations, with 24% of C-level executives calling terrorism the top threat, while the same percentage of risk manager respondents, 24%, called hurricanes and earthquakes the top threat.
Chubb suggested that the differences highlight the need for closer collaboration between companies’ risk managers and their top executives. In a statement, Kathleen Ellis, senior vp at Chubb & Son and worldwide manager of the Multinational Risk Group for Chubb Commercial Insurance, stressed the importance of companies developing an agreed upon perspective on global risk.
“Companies that don’t take this holistic approach could find themselves unexpectedly self-insuring losses that occur outside the United States and Canada,” she said.
Risk managers and C-level executives also split on emerging professional liability exposures confronting their international operations. Among C-level respondents, 59% cited employment practices liability as becoming a significant source of risk outside the U.S. and Canada, followed by fiduciary liability (58%), and directors and officers liability (55%).
Risk managers ordered those risks differently, with 55% identifying directors and officers liability as a growing source of risk, followed by employment practices liability (43%) and fiduciary liability (35%).
Speaking of risk managers, I’ll be attending the Risk & Insurance Management Society’s Annual Conference next week in New Orleans and I’m expecting to post to the blog from the event.