Beazley's chief risk officer Rob Anarfi reviews the key ERM developments of 2022, the emerging risks he is most concerned about and why the lack of diversity in insurance must be addressed
What was the most positive ERM development of the year?
The increased recognition of the important role risk frameworks and risk functions have to play in ESG. In recent years, there has been much focus on 'E' through climate change. I feel this year, societal and governance matters have come to the fore, including a clear need for the relevant risks and opportunities to be embedded in frameworks, rather than managed as separate add-ons.
What was the biggest ERM disappointment of the year?
A key part of any ERM framework is the core risk function that oversees its development and implementation. Recently, many organisations have been on a journey of upskilling their functions, which has been a real positive. However, I'm concerned that at the very senior levels we're lacking diversity.
When we meet as CRO peers to discuss matters of interest, that lack of diversity - particularly of gender - is often evident, disappointing, and somewhat embarrassing. I hope we are all doing our utmost to create diverse teams and ensure development and progression opportunities for that diverse talent.
How concerned are you about geopolitical risk in 2023?
Geopolitical risk has been a key area of focus for all organisations that I'm aware of, including at Beazley. We need to remain vigilant and responsive to any changes in the current [Russia-Ukraine] war, but also develop scenarios both for the current war and other geopolitical tensions. Geopolitical risks, and the sometimes unexpected knock-on impacts, are a key area of concern/focus in 2023.
What emerging risks are you most concerned about?
Having mentioned geopolitical risks, which have clearly now emerged, the aggregation of those risks with others, such as a global economic downturn, is a type of emerging risk scenario on my mind. Separately, and this may apply in varying degrees to different organisations, I'm concerned about coming to a consensus view about what a systemic cyber insurance event could look like.
What's your favourite part of the Christmas holiday season?
I grew up in Ghana where Christmas was about spending time with family, attending Christian church services, being thankful for the year we've had, and enjoying some good food!
In today's busy and more complex world, where we don't get to spend as much time in person with each other, my favourite part of the holiday season is definitely spending quality time with family, friends and loved ones. Especially this year as we have some family we haven't seen for a while who are visiting from Ghana!