Helping Clients Identify Risk
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Ryan Pratt, a Senior Manager with Ernst & Young, explains how they help their clients in identifying risk.
Ryan Pratt: What we do with our clients in terms of identifying risk and what could happen, and what are the potential risks that they face, is we encourage the Risk Managers that we deal with to talk to the business. Understand how the various business units that they work with operate and what are the specific risks that are going to be there. A business unit that’s based in one geography is going to have much different risk than a business unit that may be based in another geography. So understanding what the potential risks there are and talking to the leaders of the various business units and the locations, is really going to help them understand the risk that they are faced with if a major catastrophic event occurs. The second thing I’d say is understand what your policy says and how it might react in a claim or after a major event. One of the things we do with our clients is sit down with them and kind of theorize; based on what we’ve seen in past claims, here’s the type of wording that you have and here’s how it might react or some of the issues you might face if you are hit with an earthquake, or a hurricane, or a typhoon or something like that, and kind of walk through. And that allows them to see if (they) did have an event occur, what are the potential lapses (they) have in (their) coverage? And that’s something we do on a proactive basis, so that our clients can be more prepared when they are faced with a catastrophic event.
