U.K. risk managers cite reputation as top risk

Reputation risk has surpassed insurer solvency as the top risk facing risk managers, according to a survey done by the Association of Insurance and Risk Managers (AIRMIC).
The U.K.-based association surveyed nearly 100 of its members to gain a sense of the landscape in which they are operating.
“Risk managers increasingly take a broad view of their responsibilities and it comes as no surprise to see reputational risk taking the top spot, now that events have reminded us of the need to protect reputation,” said John Hurrell, AIRMIC’s CEO.
“The relatively low profile of insurer solvency is a tribute to the way insurers handled the financial crisis.”
While the economy appears to be in recovery, the effects of the financial crisis are still being felt within the risk management population, AIRMIC reported.
Fifty-one per cent of survey respondents reported lower departmental budgets, 26% staff reductions and 38% lower bonuses or pay. In addition, 53% of respondents said their responsibilities have broadened while resources are cut.