2016 update:
Hindson left his post at Amlin to take up the CRO role at Argo Group, where he is enhancing the carrier's ERM programme and restructuring the risk function. He continues to serve as a board director at Oric International and helps coordinate the Institute of Risk Management's Special Interest Group for insurers. He has also been involved in the Institute's certification scheme design and the launch of its new qualifications programme.
Alex Hindson, CRO, Amlin
Hindson has been CRO at Amlin since 2009 and has played a major role in developing the practice of ERM, running the Institute of Risk Management's ERM in insurance special interest group and serving on Institute boards relating to education and certification. He is a non-executive director of operational risk association Oric International.
What do you enjoy most about your role?
The 'caramel' centre in the middle of the ERM chocolate to me are the opportunities to help the business think about the threats and opportunities associated with key decisions. This could be evaluating a potential acquisition, reviewing a growth strategy in emerging markets or considering the consequences of a new remuneration scheme. What is common to all them is our colleagues come to us with requests for help and we are able to bring a unique enterprise-wide risk perspective to their issues or dilemmas. It is also a very pleasant break from the tidal wave of regulatory work.
What will be the next big development in risk management?
We need to urgently get back to adding some commercial value to the companies we work for, and escape from the deluge of regulatory-driven risk governance work, or we are in danger of become a second compliance function.
Once Solvency II is live and we can move into a steady state environment, I believe a lot of CROs (assisted by their CFO colleagues) are going to start looking at the cost-effectiveness of risk functions. Like our colleagues outside financial services, we will be under pressure to justify our existence and demonstrate the value we bring. It is time to prepare and become fighting fit.
Who or what has inspired your work?
I would name David Reynolds and Roger Havelock who at AstraZeneca Risk & Insurance Services inspired my interest in risk management and were 10 years ahead of their peers in creating financial and stochastic models of pharmaceutical supply chains. This gave me a huge insight into how to approach the modelling and quantification of operational risks. It was also great fun working with them.
Who do you most admire in the field of risk management?
Hans Laessoe is the strategic risk manager at Lego. He has integrated risk management into the strategic planning of the company and although a very modest man, I am sure has contributed in part to Lego's turnaround in the last 10 years. He also according to my son has the 'coolest' risk job in the world and a 'proper job' I could aspire to.
John Ludlow, global vice-president for risk management at InterContinental Hotels (ICH) has positioned risk at the centre of IHG's approach brand protection and brand value. This is a very astute move which has allowed him to integrate a large number of specialist risk teams and position them as core to their 'BrandHearted' approach.
What advice would you give to someone wanting to emulate your success?
It might sound trite, but 'risk manage your career'. Occasionally you have to take some big risks and try something new. I moved from manufacturing management into risk management and from industry into consulting and finally into financial services. But in each case I thought about what I could do to mitigate my personal risks. The Institute of Risk Management 'ERM in Insurance' special interest group started off as my mitigation plan for needing to build a network amongst risk professionals in insurance.
What have you learnt about communicating risk?
Keep it simple. People will pay you to solve their problems, not to show how clever you are. Help the business address its risk issues in a practical and low key way and they will want your help. Remember it is not all about process, the cultural side of risk management is incredibly important and when those 'moments that matter' happen, that is when you will find out if your efforts were worthwhile. Will people do the right thing, when you are not watching?
What are your other interests?
I am very interested in history and genealogy in particular. I managed last year to reunite five branches of my family that had not met for over 100 years. I enjoy archery and cycling when I get a chance. My family are avid board game players largely because of me.
