World leading risk management experts from the Direct Line Group, JLT and consultancy firm, Enterprise Risk Advisors, provided interesting insights and commentaries at Xactium’s biggest and be
st conference to date in December.
Attended by existing and prospective users of Xactium’s Risk Management Software [link], the third annual event began with a warm welcome from Xactium Managing Director, Andy Evans, followed by a keynote speech from Philip Martin. The event was held at America Square Conference Centre, London. Click here to view the event highlights video.
In his speech, Phillip Martin, founder of Enterprise Risk Advisors and former Chairman of the Institute of Operational Risk, talked about risk appetite and key risk indicators and some of the challenges that regulators, in particular, have found when visiting financial services organisations.
These include the need for companies to “turn a qualitative discipline such as risk management into something that makes numerical sense” so it provides valuable, actionable information, to the challenge of developing “a risk appetite and indicator programme that is truly forward-looking and predictive”. Other challenges that firms face include the need to keep the risk appetite framework, and more importantly, indicator framework fresh.
Phillip also talked about the value of risk appetite frameworks in helping businesses manage risk and in the importance of responding to indicators, rather than viewing them as an optional activity as is frequently the case. “Just try to imagine the consequences if the nuclear sector ignored early warnings, or pilots or motor manufacturers.”
Phillip went on to talk about hedge-fund firm Man Group and how they averted disaster by responding to one of their indicators that tracked the credit market spreads of all companies they had funds on deposit with, and that had gone red. This alert prompted the company to remove all their assets from the Lehman Brothers a few weeks before the bank’s collapse in 2008.
Philip’s overall message was about the value of keeping risk appetite simple and in a form that makes sense to all stakeholders. As he states, “the fastest way to disengage with an audience is to feed them information that is entirely irrelevant to their business”.
Phillip concluded with some advice on how best to manufacture appropriate indicators and avoid the pitfalls of building indicators based on the information you have, rather than the information you need.
Following Philip’s speech, conference panelists David Smith and Ellie King from Direct Line Group talked about their recent experience in implementing Xactium, while Andy Ray, Group Business Risk Manager at JLT discussed why Xactium’s Risk Management Software is still their preferred risk management solution after a thorough market testing review of alternative options.
During the afternoon Xactium shared the next generation software upgrades and features, followed by a round table discussion on the forthcoming releases and future roadmap. This was an extensive and thorough examination where existing users were encouraged to input into the future of the software. It also provided a useful forum for people to share their experiences with one another.
Joe Aston, High Speed 2 said,“...well worth attending to meet with industry peers to understand how they are addressing similar challenges to your own… a good opportunity to input into the plans for future development”
Andy Evans, Managing Director commented “I am really pleased with the feedback from the day. It’s clear that one of the key benefits was the opportunity for senior risk managers to network and share experiences, and we are looking forward to running similar events during the year.”
Click here to register your interest in future events