The art of risk governance

With tension all up in the air in episode four of The Insurance Apprentice, team dynamics seem to be taking an unexpected turn. With most of the tasks for The Insurance Apprentice 2018 complete, the competition remains intense as the apprentices’ head to the finish line.

Task five #riskgovernanceandethics
In the fifth episode of The Insurance Apprentice, sponsored by Marsh Africa, readers will get a glimpse of the apprentices putting on their thinking caps when assigned with task five based on risk governance and ethics.

Over the last 30 years, ConsultCo has been recognised for its global reach, depth of experience, risk management and good corporate governance in running its business and dealing with its clients.

Recently, the company has been accused of professional malpractice related to the approval of erroneous financial statements, ignoring questionable payments, enabling improper and imprudent client practices, manipulating earnings reports, breach of regulations, receiving and giving inappropriate gifts and entertainment, failing to uncover illegal sales practices and even potential corruption.

The broking firm
In seeking advice concerning the board’s duties around risk governance and ethics, the task for the day sees guest judges Christelle Marais, Chief Risk Officer and Teri Solomon, Directors & Officers Liability Expert at Marsh Africa, act as Chairperson and Chief Executive Officer of ‘ConsultCo’.

They request an urgent meeting with the broking company (apprentices) after media coverage of alleged serious misconduct, leading to public commentators calling for its closure, the media calling for the directors to be sued personally, and industry bodies calling for regulatory investigations into their conduct. In addition, a number of high profile clients have terminated the appointment of ConsultCo and the board is extremely concerned about future losses and reputational damage.

In preparation for their meeting with ConsultCo SA’s Chairperson and Chief Executive Officer the apprentices, acting as the broking firm, are requested to clarify the duties of the board in relation to risk governance, identify the risks faced by individual directors of ConsultCo SA, recommend appropriate risk mitigation strategies (including insurance solutions) and identify the risks (including potential consequences) that ConsultCo SA faces and provide advice on appropriate risk mitigation strategies (including risk financing solutions such as insurance).

Overwhelmed and flustered, did the apprentices clarify and identify the risks? Did they recommend and propose the appropriate risk mitigation strategies? Most importantly, did they win the client over?

Watch it here

Hear the verdict and what judge Simon had to say in episode five.

We would like to thank Marsh Africa for sponsoring the fifth episode of The Insurance Apprentice 2018.

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The prize

The winner of The Insurance Apprentice 2018 will fly to London, in business class, for a week to visit Lloyds of London, sponsored Lloyds of London; the winner will also receive a bursary valued at R75 000 from INSETA and win a cash prize of R20 000 from Masifunde Training Centre. The Insurance Institute of South Africa (IISA) is also sponsoring the winner to go to the Insurance Conference at Sun City in July 2018.

Stay tuned

Stay tuned for episode six via the FAnews and The Insurance Apprentice websites, YouTube and Facebook.

 

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