Our approach to country risk management
Our approach to helping make countries more resilient in the face of the economic costs relating to natural catastrophes and other disaster events.
The public sector is increasingly interested in integrated risk management approaches. In the past, the primary concern was civil protection in the event of war or natural disaster. Given the diversity and interconnectivity of contemporary risks – from economic and financial, to environmental, societal and political risks – the focus has now shifted to comprehensive country risk management approaches, backed by solutions that allow governments to finance losses before a disaster occurs.
Novel risk transfer solutions
The rising impact of disasters is driving up the costs of relief and reconstruction. Private sector insurers have developed innovative risk transfer products to mitigate the financial impact of such events. These solutions provide models for governments and NGOs to manage disaster expenses more efficiently by funding them before – instead of after – a catastrophe occurs.
The case for a Country Risk Officer
Modern risk management – both in the private as well as in the public sector - relies on integrated risk assessments. As such, it must take a portfolio view on risks and include all risk categories and their interdependence – from technical, economic, natural to social risks in a geographic context. Many global corporations have therefore created the position of Chief Risk Officer – often as part of the senior management. Such a position is still largely unknown in the public sector. Swiss Re believes that established practices in enterprise risk management could form the basis of risk principles in the public sector, including the idea of a Country Risk Officer and Country Risk Maps.
Building institutional expertise in integrated risk management
To develop new tools, methods and solutions, we are fostering integrative risk management research and education - across various disciplines and based on prevention, preparation, response, recovery and risk transfer. In addition to providing immediate support to people affected by disasters, we are also contributes to building institutional expertise through its corporate citizenship.
Based on our risk management expertise, our engagement to make societies more resilient comprises the following elements:
- promote effective country risk management practices
- foster integrative risk research and education
- support practical solutions to humanitarian challenges such as disaster prevention and instant relief
- develop novel private-public risk transfer solutions
Closing the financial gap: Public-private innovations in disaster ris
New forms of public-private insurance solutions hold the key to financing disaster risks, says a new Swiss Re report. “Closing the financial gap” features some of our most innovative transactions and...
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Swiss Re at WEF 2014
Building resilience requires many components, including country risk management and food security.
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