In an evolving risk landscape, it is vital for organizations to understand the challenges they face and to determine their willingness and ability to take risk. Our Blue[i] Risk Appetite Analytics solution — supported by Marsh’s Advisory team of specialists — can help you gain insights about uncertainties your organization may face, assess their potential financial impact, and define your risk appetite.
Our team utilizes both qualitative and quantitative analysis to help you define your enterprise-wide risk appetite value. This, in turn, enables your insurance team to design a risk transfer program that aligns with your organization's willingness and ability to take risk.
Using specific data about your organization and goals, we offer three approaches by which you can assess your risk appetite:
- KPI-based: Our specialists collaborate with you to understand key performance indicators that you have identified as critical to your business and capture thresholds of each KPI that reflect your company’s current willingness and ability to take on volatility.
- Peer-based: Our specialists use the KPI-based method to provide directional insights on how your willingness and ability to take risk compares on average to the results of a self-defined set of your peers.
- Sources of funding-based: This method builds up your risk appetite based on your available capital to fund unexpected losses, considering current and future liquidity requirements.
With Blue[i] Risk Appetite Analytics, you have the flexibility to select a single approach or combine multiple approaches to help you determine your risk appetite. Empowered with a comprehensive understanding of your risk appetite, you can work with your broker or insurance advisor to build an insurance program that provides your organization with financial protection that aligns with your risk appetite in the event of a loss.
Blue[i] Risk Appetite Analytics provides valuable insights into your company’s willingness and ability to take risk, enabling you to make informed decisions and design optimal insurance programs that enhance your organization’s resilience in the face of evolving risks. For more information, contact your Marsh representative.