CII: risk management could be hampering profits

Laura Miller
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Firms are approaching risk management purely as a way to deal with negative outcomes rather than as a means of creating profitable opportunities, a survey of Chartered Insurance Institute (CII) members suggests.

According to the research, risk management is viewed by advisers as a "hygiene activity" to deal with problems, or to handle what is required by regulators. It is primarily viewed as a compliance exercise, rather than something to help firms achieve core strategic objectives. Nor do advisers see it as a means of creating potentially profitable opportunities - this is regarded as a secondary concern, the CII said. The research - which is part of a wider academic investigation into risk management by the London School of Economics and the University of Plymouth - found that complianc...

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