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Risk Management

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Steady rise in heavy rainfall events during 3 last years: Harsh Vardhan

Earth Sciences Minister Harsh Vardhan said studies show that the frequency of severe cyclones in the Arabian Sea has increased in recent years.

The data shows that there is a steady increase in the number of heavy rainfall events during the last three years, Vardhan said.

The frequency of cyclones too has seen a rise, he noted.

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ni-msme and IRM India sign MoU to strengthen risk-readiness of MSME sector

The programme will jointly develop policy roadmap to secure Indian MSME sector against future risks

Hersh Shah, CEO, India Affiliate of Institute of Risk Management, UK, said, “In the coming months, we aim to develop a blueprint that will help India’s 6.33 crore MSMEs apply globally-recognised enterprise risk management frameworks and practices, to navigate successfully through the current crisis, as well as safeguard themselves against future uncertain events beyond just financial risks.

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1/3rd of UK’s medium-sized businesses likely to purchase cyber insurance since COVID-19 outbreak:GlobalData

“Fraudsters have capitalized on employees working from home – with phishing scams, in particular, on the rise – preying on fears surrounding the pandemic such as using COVID-19-based hooks in phishing emails. Employees who are out of the office and away from colleagues are more at risk as they are less able to check the validity.”

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Top shipping insurance group will not cover ships for Russia, Turkey pipelines projects

U.S. President Donald Trump’s administration has sought to curb the Kremlin’s economic leverage over Europe and Turkey and has warned investors in the two natural gas pipelines could face sanctions.

The International Group of P&I Clubs represents the world’s top 13 ship insurers and covers nearly 90% of the world’s ocean-going tonnage. The notice carried by its members said that all clubs had issued similarly worded circulars regarding Nord Stream 2 and TurkStream.

Led by Russia’s Gazprom, the $11 billion Nord Stream 2 pipeline project to double the capacity of the existing Nord Stream 1 link is more than 90% complete and scheduled to begin operating next year.

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IMF official warns coronavirus will weigh on some economies for years

The Fund has provided some $90 billion in total financing to 79 countries, including 20 in Latin America, since the start of the health crisis, an IMF spokeswoman said.

It is continuing to work with member countries on how to contain the pandemic and mitigate its economic impact, First Deputy Managing Director Geoffrey Okamoto told an online event hosted by the Center for Strategic and International Studies.
Okamoto told that Fund officials were in talks with the Group of 20 major economies about extending a temporary halt in official bilateral debt service payments by low-income countries under the Debt Service Suspension Initiative (DSSI), and how to kickstart private sector participation.

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AIR Worldwide Releases updated Multiple Peril Crop Insurance Model for China

An outbreak of African swine fever—a highly infectious and deadly disease—started impacting pigs in China in 2018, resulting in a loss of half of China’s 400 million pigs, or 40% of the world’s total agricultural pig population, as of the first half of 2020.
“China is a leading global producer of wood and paper products; the country’s forests can be insured under the national crop insurance scheme and incur large losses not only from extreme weather but also fire, pests, and disease,In addition, livestock (including poultry) policies now make up about a quarter of agricultural premiums in the country and have a large potential for losses. To get a comprehensive view of agricultural risk in China, companies must consider the risk to crops, forests, and livestock,”said Yizhong Qu, assistant vice president, AIR Worldwide China.

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Risk professionals face six challenges in addressing reputational risks:Airmic,RIMS Report 

The six challenges are Unclear definition of reputation,Confusion on the categorization of risks to reputation,No commonly agreed upon, consistent measurement of the business impact from specific risks to reputation,No framework for linking the strategic, operational, and tactical aspects of reputational risk management,An absence of integrated ownership and accountability across organizations and Slow development of solutions for risk transfer including insurance.
The report states that risk professionals today are at a crossroads, where they can follow one of two paths: the first, where they have the responsibility but no influence and control; or the second, where they can contribute value to the organization by leading implementation of a structured, data-driven and systematic approach to reputational risk that draws the whole organization together around a common framework

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