Having explained the risk management and business planning context, the talk provided 4 examples of emerging liability risks:
- phosphate additives in food
- long nano fibres
- diesel engine exhausts
- night shift work
In each case, the students were asked to be the Board of Directors and given 3 options, choose one which would be company policy on that risk. For example: do nothing, divest from that market sector, increase premium, reduce premium, prepare a defence strategy etc. … among the usual choices for insurance risk managers. Responses were provided and they were allowed to change their minds as the consequences of each choice were explained. But they made a choice.
Its all about forming a judgment and making a decision.
These well educated young people were able to form and evaluate their own judgements in the face of some significant uncertainties.
Many thanks to Swansea University for the invitation.