Risk in the C-Suite

Developing a sustainable competitive advantage in an increasingly uncertain environment is arguably the most challenging issue facing businesses. Companies that can quickly assess if potential opportunities, adverse events, or a combination of both are in line with their appetites for risk will be able to outmaneuver competitors.

Yet such companies remain a minority. More than half (53 percent) of senior financial professionals say they have greater difficulty anticipating risks to their companies’ earnings today than they did before the financial crisis, according to the results of the 2013 Risk Survey conducted by the Association for Financial Professionals (AFP) in collaboration with Oliver Wyman’s Global Risk Center.

C-Suite Risk Conversations.

Scott Gilbert, Marsh & McLennan Companies’ Chief Risk and Compliance Officer, and Bruce Nolop, a member of the company’s board of directors, have been involved in efforts to improve risk communication between the board and the C-suite ever since they joined the company’s ranks in 2005 and 2008, respectively. Marsh & McLennan Companies introduced a risk appetite statement in July.

In this video, Scott and Bruce discuss the importance of risk conversations for business leaders.