Corporate scandals still on the minds of risk managers: Lloyd’s survey

An overwhelming majority of risk managers feel that the U.S. market has not seen the last of the major corporate scandals, according to a survey by Lloyd’s.
A full 89% of risk managers, responding to a survey conducted at the Risk and Insurance Management Society (RIMS) Conference this week in San Diego, say they expect more such scandals. They also see economic downturn (38%), class action lawsuits (33%) and corporate governance (20%) are the key issues facing companies today.
Other concerns include intellectual property risks, with 95% of risk managers citing this as a moderate to major risk over the next five years. And terrorism remains a greater risk today than even two years ago, 53% of risk managers say.
“The time has come for businesses and insurance companies to join together and address these issues,” says Lloyd’s chairman Lord Peter Levene.
Risk managers also offered their thoughts on the upcoming presidential race, with 71% speculating George W. Bush will be re-elected.