FOCUS
Air cover At this year’s AIRMIC, insurance professionals explored approaches to risk and technological developments.F&RM covers the opening day
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IRMIC 2018 (11-13 June at ACC Liverpool) drove home the message in its theme, ‘The Future is Now’, by urging a profession
‘in transformation’ to embrace change. This was a departure point for discussing how risk and insurance professionals can seize the strategic opportunities and the challenges presented by a global technology that’s no longer a distant risk. Companies are increasingly interconnected
and share the same network, while the IT industry’s ‘monoculture’ brings a greater concentration of risk, including to the supply chain, as does regulation change, potentially impacting many companies. Societal changes play their part too, AIRMIC reasoned. Social media, for example, has destroyed the idea that a news cycle can be managed. ‘Can your company cope?’, asked Spencer
Kelly, presenter of the BBC’s technology programme Click and mediator of the interactive panel debate, ‘The Revolution is Now!’ , which opened the conference. The panel discussed questions posted digitally by the audience on what this new knowledge might look like and the skills required. To build resilience, protect brand and reputation,
and ensure growth, businesses must prepare now and restructure – exposure to cyber risk can’t be left to the IT team. The cyber threat from Russia, with its impact on elections and referenda, was ‘more
46 OCTOBER 2018
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pernicious than hacking’. A secondary effect is the emergence of new legislation – ‘the regulatory frontier’ is where the US Congress and the EU will be looking. But it’s not just cyber risk; technology itself brings risks as we move further into digital science, big data etc. Can we learn from the Facebook and TalkTalk ‘disasters’? These are monopolies, but also they are fundamental to millennial interaction. Key focuses in the impact of digital are the
internet of things (IoT) and artifi cial intelligence (AI), as they enable organisations to rethink processes, practices, information systems and customer delivery, changing the risk, resilience and business models that drive business performance. The risk profession – historically technical people
– needs to challenge legacy governance models and become business partners. Organisations are moving away from static risk registers and towards horizon scanning/scenario analysis – basically, understanding context. The rewiring involved in ‘walking the revolutionary road’ is challenging and requires signifi cant board level support. A good balance in risk transfer and commercial insurance lies between human judgement and scientifi c methodology using algorithms and AI. Potential dangers in assessing risk with more
automated systems and the ethical implications were then aired. An ethical framework for AI
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