Risk Management
Organisations continually face a changeable risk landscape which has the potential to leave them exposed in the event of an unexpected loss or disruption.
Risk Management needs to be an integral part of an organisation’s decision making process to identify, assess and mitigate existing and emerging risks that could impact success.
Aon offers fully integrated risk management services. We are more than just insurance. We are about helping organisations optimise their insurance programme, enhance their risk management and recover from adversity.
Risk management can be a daunting task – that’s why our team has the resource, skill and depth of experience to advise and lead our clients through even the most complex risk solutions.
Aon Risk Management Services is a specialised consulting division of highly qualified and accredited personnel including accountants, risk and fire engineers and certified valuers. Our nationwide team of risk experts help our clients to understand their risk profile, develop and communicate risk management improvements, protect interests and maximise insurance programmes.
The following are examples of Aon’s risk management services; however, our priority is to fully understand an organisation, it’s people and needs so we can provide a truly bespoke risk solution.
Business Interruption Solutions
Organisations need to be adequately insured to minimise any lost income as the result of an event that interrupts business operation. It can be difficult to understand and accurately quantify business interruption exposure and organisations often miscalculate or select inappropriate business interruption declared values. This can result in adverse financial implications.
This can be further compounded by changes in business structure, acquisition and mergers, and evolving business trends.
Aon Risk Management Services are experts in identifying business interruption risk. We assist our clients to provide a tailored business interruption programme with the correct declared insurance values and limits for all insurable risks, so that they have sufficient insurance cover.
Claims Consulting
Claims management is one of the most important components of any risk financing program. If a claim is poorly administered, it has the potential to impact significantly on an organisation’s balance sheet, cash flow and reputation.
Should a claim be made, it is essential an organisation has the appropriate support structure and qualified advocates to help.
Aon can act as the claim preparer and loss mitigation advisor to collate all the necessary documentation and financial calculations in support of the insurance claim, provide policy advice and negotiate with the insurer.
This results in expert interpretation and application of the insurance policy utilising all cover and obtaining optimal indemnity and timely preparation of the claim to maintain cash flow.
Loss Modelling
Loss modelling determines Material Damage loss for the primary purpose of setting insurance limits and includes:
- Financial Modelling to quantify risk tolerance, risk retention or reserving schemes.
- Fire Loss Modelling to quantify probable maximum, probable and normal loss in the event of fire.
- High Level Earthquake Assessment to quantify probable maximum loss due to a significant earthquake.
- Natural Hazard Modelling to quantify probable maximum, probable and normal loss in the event of a natural hazard event.
Risk Profiling
- Business Continuity Planning to provide strategies and tools to help keep a business operating following a disruptive event.
- Enterprise Risk Management software and consulting to improve organisational risk maturity.
- Insurable Risk Profiling to identify business risk exposure and provide an insurance analysis and recommendations.
- Strategic Risk Assessment to deep-dive in to critical risk exposures.
Risk Tolerance
A financial analysis to calculate risk tolerance to unbudgeted loss in a financial year. There are two elements to this analysis:
- Risk Bearing Capacity Analysis - Ratio analysis applying benchmark ratios to key financial metrics. This offers a high-level guideline based upon the relative size and financial strength of a company.
- Quantitative Tolerance Analysis - Using the most recent annual accounts to show the key financial ratios to determine the impact of adverse loss scenarios on these ratios and at what point they reflect material levels of stress.
Site Surveys
Site surveys identify a site’s risk and provide a detailed report for insurance underwriting purposes based on construction, occupancy, protection, management systems and loss estimates. The process benchmarks the site with national and international standards. We undertake site surveys on a range of properties such as single buildings, complex interconnected campuses, and large multi-site corporations. We can also provide consulting services for:
- Fire risk assessment with high level cost-benefit analysis.
- Managing Expanded Polystyrene Sandwich Panels (EPS) to improve safety and insurability.
Site surveys identify a site’s risk and provide a detailed report for insurance underwriting purposes based on construction, occupancy, protection, management systems and loss estimates. The process benchmarks the site with national and international standards. We undertake site surveys on a range of properties such as single buildings, complex interconnected campuses, and large multi-site corporations. We can also provide consulting services for:
- Fire risk assessment with high level cost-benefit analysis.
- Managing Expanded Polystyrene Sandwich Panels (EPS) to improve safety and insurability.
Sprinkler and fire alarm certification and inspection
Aon’s Fire Protection team are widely regarded as the most experienced and effective fire protection team in New Zealand. Our priority is to offer a solution focused service that is designed to exceed our client’s expectations and ensure compliance with statutory obligations.
Aon provides certification to new sprinkler systems and significant extensions to existing systems, to verify compliance with New Zealand's Sprinkler Standards. Working with clients during the design and contract stage of the project, Aon ensures that fundamental design decisions are sound so that fire protection systems will be able to be certified at the end of the project. This provides a greater surety when evaluating costs and ensures that certification delays do not inhibit occupancy.
Our priority is to minimise the risk of failure to achieve a Code of Compliance Certificate for our client’s projects and minimise fire risk. We are always conscious of costs and the need to adopt a pragmatic, effective approach to dealing with the challenges of fire. Certified as a Type A Inspection Body by IANZ under ISO/IEC17020:2012, our clients can be assured of our competency and independence.
Aon Fire Protection also assists to produce clear and consistent sprinkler inspection reports, outlining what items should be addressed to allow a “Form 12A” to be issued as part of the Building Warrant of Fitness regime. Aon Fire Protection can also assist clients in other areas, such as in carrying out fire protection system condition assessments, risk assessments and fault finding exercises.
Valuations
Aon Risk Management has one of the largest and most experienced valuation teams in the southern hemisphere capable of valuing assets including, buildings, plant, equipment, machinery, infrastructure and fine arts.
Unless an organisation has recently had an insurance valuation, it is possible the sum insured values for physical assets are inadequate and they are often unknowingly buying insurance cover that would only provide a fraction of the replacement cost in the event of a loss.
Insurance valuations provide insight into the underlying issues that affect the level of insurance cover needed, providing a sound base for the calculation of sum insured values.
Aon provides a three year valuation program involving an on-site inspection in year one followed by annual on-desk reviews the following two years accounting for asset changes such as new buildings, capital expenditure, disposal or acquisition of assets. This process maintains the accuracy of insured values and the integrity of the valuation process. Valuations also support annual insurance renewal negotiations and provide the necessary documentation for faster settlement in the event of a claim.
To find out more about Aon Risk Management Services, get in touch with your local Aon insurance broker today.