Risk Management Services

Risk Management Services

Aon Global Risk Consulting (AGRC), part of Aon Risk Solutions, provides a range of integrated solutions to help you to understand and improve your risk profile, protect your interests and increase your business profitability.

Our professional staff, and our unique ability to harness data insights, enables us to empower real results for our clients. We do this by identifying and quantifying the risks you face, by assisting you with the selection and implementation of the appropriate risk transfer, risk retention and risk mitigation solutions and by ensuring the continuity of your operations through claims consulting and advice.

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AGRC delivers a wide range of solutions, encompassing claims consulting, risk consultancy services (including analytical and loss modelling services, business continuity management, captive management, enterprise risk management and insurable risk profiling), risk control and engineering consultancy services, and valuation services.

Claims Consulting

Aon Claims consulting specialists possess strong technical expertise in forensic acountancy, investigation and insurance. They provide specialist accounting, fraud investigation and analytical advice in respect of the following insured risks:

• Property
• Business Interruption
• Construction Risks
• Delay in Start-up/ Advance Business Interruption
• Product Contamination/ Recall
• Fraud/ Crime/ Fidelity
• Cyber

The Claims Consulting team assists in the post-loss quantification, preparation and settlement of claims. Our professionals further utilise their wealth of claims experience to conduct a variety of pre-loss consulting assignments, which assist in the mitigation and efficient/effective transfer of risk to insurers.

Pre-loss:

• Have you had a comprehensive Business Interruption review including a policy wording review within the last three years?
• Is your policy tailored to meet your specific needs?
• Have you tested your exposure to BI losses? Are you comfortable with your BI cover in terms of structure, wording and declared values?

Post-loss:

• Have you established a claim procedure to engage Aon Claims Consulting in the event of a large property damage loss or a business interruption loss?
• Have you incurred any large losses over the past 12 months that comprised significant material damage and / or Business Interruption losses?

Risk Consultancy Services

Aon provides multiple risk consultancy services including Analytical and Loss Modelling Services, Business Continuity Management, Captive Management, Enterprise Risk Management, Loss Modelling and Insurable Risk Profiling, as described below.

Analytical and Loss Modelling Services

Analytical support is utilised to provide clients with sound and logical reasoning for determining their most cost efficient risk financing strategy. This covers analysis such as risk tolerance and appetite, loss modelling and capital adequacy, with a focus on reduced cost of risk, more manageable volatility, and enhanced capital returns aligned with your profile and objectives. We can also assist clients to pursue stronger corporate governance and help instill a positive risk culture across an organisation.

Aon has also developed bespoke natural disaster modelling techniques improving community resilience at a local level across New Zealand. Robust loss modelling, risk management and risk transfer are essential considerations, all demanding expert assistance. New Zealand simply cannot afford to fund its inherent natural hazard exposure and has to mitigate its risk exposure and engage international insurers to provide the required capacity. Aon’s role, by using its local, global and external expertise, is to ensure that risks are identified and quantified and that adequate and sustainable insurance capacity is made available to our clients.

Business Continuity Management

Business continuity ensures your business is resilient to risks where there is a potential for loss or damage to your assets, people, information, buildings and infrastructure. Aon has innovative and simple solutions, based on international practice, to mitigate the potential impacts from major loss events.

Business continuity insurance is an investment in your business. Insurance can soften the immediate after-effects of a loss but will not by itself allow your business to recover efficiency, market share and restore customer confidence.

Captive Management

A captive is a bona fide insurance or reinsurance company owned by a non-insurance company parent and which insures or reinsures the risks of its parent and/or affiliated companies. It is similar in principle to a conventional insurance company and usually formed in a specialised regulatory environment. A captive can make risk financing more cost effective and ultimately reduce total cost of risk. A captive may control the budget that is allocated to risk management and help finance the company’s losses.

The Aon team can assist in developing the benefits of cost effective management, using the latest technology and expertise to add value to their business through the following captive services:

• Financial accounting and management
• Insurance and claims management
• Regulatory reporting and compliance
• Treasury Board meeting services
• Captive formation and consultation

Enterprise Risk Management

Our Enterprise Risk Management Framework and Risk Assessment offering is an Aon core service offering. This is a multi-phased product which can be applied in its entirety, or in distinct phases, providing incremental value to our clients. Often the service is delivered in separate phases to reflect and address a client’s specific needs.

Services include:

• Risk management maturity benchmarking – assessing the client’s current risk management practices (whether formal or informal in nature) against good practice standards (utilising COSO and ISO 31000), highlighting key areas of development and informing resource allocation
• Framework design and development – with an appreciation of the current risk management maturity, a framework can be designed or developed with the client to facilitate the implementation of an ERM framework that is aligned to good practice standards and the client’s specific needs
• Risk assessment – risk assessments can be conducted at various levels of the organisation from Board level, to operational business units or on individual projects or risk areas. The output of risk assessments provide clients with up to date risk registers forming the basis for meaningful management information, risk decisions and prioritisation

Benefits of the service:

• Aligning risk appetite and strategy
• Reducing operational surprises and losses
• Ensuring robust and transparent risk management
• Strengthened decision making
• Embedding risk management across the organisation

Insurable Risk Profiling

Insurable Risk Profiling is a structured process of risk identification and analysis which creates a visible link between a client’s insurable risks and the design of an insurance program. The profiling process assists with understanding the scope (risk classes) and size (limits) required to be covered by insurance and identifies any gaps in cover including uninsured but insurable risks.

Benefits of the service:

• High level assurance that risks are transferred where intended
• Greater understanding of retained risks
• A formal process that demonstrates good corporate governance
• Linking insurance to overall process for risk management
• Increasing Aon’s profile and access to people through client engagement
• Improved understanding of our client's risks and needs
• A channel to communicate value of insurance to clients and our information requirements
• Compliance with regulatory and/or licensing requirements

Risk Control and Engineering Consultancy Services

Aon provides risk control and engineering services through a strong New Zealand engineering team, and globally offering our clients access to over 500 qualified professionals operating across a diverse range of sectors. These sectors include energy, mining, manufacturing, heavy industry, healthcare and commercial property.

Aon’s risk control services offer a truly independent service allowing an approach that takes a pragmatic view of the risks that exist and providing practical solutions that enhance any existing risk management policies in place.

Risk Control Surveys

Risk Control Surveys contain full information on all property risk controls, loss expectancies (including maximum foreseeable loss and normal loss expectancy calculations with credible scenarios), and photographs.

The risk recommendations will contain advice to mitigate exposure where risks have been identified. Having Aon complete the survey ensures that all information is passed on to you, the client, and can be used for remarketing to a variety of insurers at anytime. In addition, Aon can offer risk recommendation follow-up and management services, and provide benchmarking tools to compare properties within the portfolio. This can include high level management reports which will quickly identify the status of the full portfolio.

The team’s experience can deliver expertise across various sectors such as power (traditional and renewables), manufacturing, food and beverage, healthcare and property to name a few. Recent risk survey information allows Aon to create market contestability.

Risk surveys can particularly assist when:

• Organisations have some difficulty in attaining rate reductions or capacity due to harder to place risks (e.g. high risk, manufacturing, EPS)
• Organisations have a frequency of losses in property or liability and/or a poor loss ratio
• Organisations that are seeking rate reductions through an insurance program re-marketing exercise
• Organisations need to present evidence of best practice in workplace risk management if summonsed by a court after a loss or injury

Risk Engineering Consultancy Services

The Risk Engineering team provides outstanding consultancy services, technical reports and recommendations on all aspects of hazard risk. This specialist advice assists clients to minimise the frequency and consequence of a loss. Be it a property, public liability or environmental peril, Risk Engineering can provide practical advice to mitigate and control these risks.

Aon globally is the fourth largest employer of risk engineers in the world and is the second largest provider of unbundled loss prevention services worldwide. Risk engineering has a wide range of specialised services as outlined below:

• Calculation of loss estimates (Maximum Foreseeable Loss, Probable Maximum Loss and Normal Loss Estimate). Bespoke natural disaster modelling (including infrastructure assets.
• Cyber risk
• Development of fire protection standards
• Development of risk control standards
• Pre-construction and plan reviews
• Process safety
• Product quality
• Project risk management
• Public liability assessments
• Quality underwriting presentations
• Recommendation follow-up service
• Risk control and engineering underwriting property surveys
• Risk workshops, training and seminars
• Special focus surveys (e.g. boiler and machinery reviews)
• Supply chain risk

Valuation Services

Aon Valuation Services provide a single professional solution addressing the full spectrum of valuation and fixed asset needs which our clients today demand in order to comply with corporate governance as well as International Accounting Standards.

Valuation Services value all tangible assets including land, buildings, infrastructure, plant, equipment, IT, general office contents and fine art. The New Zealand and Australian teams undertake over 750 assignments each year from single sites to multi-location valuation exercises globally.

Benefits of the service:

• The quality and experience of the valuations team (who are qualified to undertake both accounting and insurance based valuations during a single client visit) means reduced time, expense and risk of error
• Extensive experience in all major sectors ranging from mining, energy and manufacturing, through to health and education within both public and private sectors
• Insurance valuations ensure that the clients are not over-insured thereby paying unnecessary premium costs. Conversely, under-insured values can result in claim disputes and/or repudiation.

Contact us today to find out more about our Risk Management Services and how to protect your property, income and assets.