X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Douglas Barlow, a Canadian executive at equipment manufacturer Massey Ferguson, once said, “All management is risk management.” Mr. Barlow made his remark in 1962 and it could never be more true than it is today. Risk assessment and risk management should be omnipresent concerns for all general counsel. Everyone assumes that their businesses are insured and that, in the event of a calamity, insurance will be available to respond. This may be � and probably is � true, but there can be serious limitations on the availability of coverage for certain events. Knowing the scope of available coverage in the event of a catastrophic event is critical to risk assessment and planning. But effective risk management involves more than simply maintaining an adequate insurance program. The best risk managers � and every general counsel should get involved in the risk manager role to the extent possible within the company � constantly keep their eyes open to changing circumstances that may present new or increased risks � and prepare accordingly. The insurance industry itself, whose business depends on accurate risk forecasting, often provides important cues to business leaders in this regard. Or they could be red flags, in the case of the industry’s recent actions with respect to global warming. A great deal of attention has lately been paid to the issue of global warming. From former Vice President Al Gore’s movie “An Inconvenient Truth” to Tom Brokaw’s recent television special, the topic has been featured prominently in the media and popular culture. While the issue is somewhat politicized, no one seems to disagree that global warming, as an environmental phenomenon, is occurring. And the insurance industry is recalibrating its risk assessments accordingly. Lloyd’s of London in June published a very sobering report, “360 Risk Project � Series 1, Catastrophe Trends,” which discusses the impact of climate changes on risk assessment. Its observations and conclusions include:

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.