Christopher Cundy speaks to the chief risk officer who scooped the top prize in this year's InsuranceERM UK & Europe Awards
Sheldon Lacy is celebrating two milestones this year: his 10th year as a chief risk officer (CRO) and his 50th birthday. But happily he's not on the verge of a midlife crisis. Instead, he is literally getting into his stride by running the London Marathon in April; and metaphorically too in his leadership of the risk function at Canopius, a specialty, property and casualty re/insurer.
Reflecting on his approach to risk management, he says his natural interest has always been on the commercial element.
"Rather than looking for reasons to say no, I focus on what we're trying to achieve and whether it aligns with our risk management framework and risk appetite. My role is to help shape the strategy and work alongside teams to make it happen," he says.
Since acquiring AmTrust in 2019 – where Lacy was previously CRO – Canopius has grown its annual gross written premiums by 130%, overseen by a risk function that has also measurably improved its trust and engagement with the rest of the company. Their successes were also rewarded with a win in the 'Risk team of the year category' of the InsuranceERM Awards
Lacy says one of the keys to achieving sustained growth is his relationship with group CEO Neil Robertson, other members of the leadership team and the board. "The relationship with the CUO [chief underwriting officer Sam Harrison] is paramount. I can't count the times that Sam and I have spent discussing elements of what we're going to do and how we're going to do it."
This process normally starts with someone saying they would like to go into a new line of business or risk, and the risk team debating key considerations, beginning with confirmation that it complies with all relevant laws and regulations – a question that Lacy says has become increasingly difficult since the number of sanctioned companies and individuals has soared after Russia invaded Ukraine and other conflicts have emerged globally.
Another current trend occupying insurers' C-suites is the softening rates in many property, casualty and specialty lines. After two years of steep rate increases, where insurers felt confident to deploy more capital, the cycle is beginning to turn.
Lacy explains the risk team has an essential role in these conditions, too. "For me, good risk management allows an organisation to put the brakes on later," he says, "making sure we can keep moving forward confidently." As profitable opportunities become scarcer, he says the priorities are to maintain the strategy, but adapt it if necessary, and ensure the business does not chase premium.
"It's really important that as we head into this phase of the market that we're able to use the actuarial data, the capital modelling and the market data to understand where there are still pockets that we're able to grow, and where and when we need to put the brakes on."
As the business has grown, Lacy has built out the risk, legal and compliance capabilities, as well as strengthening frameworks, upgrading systems and embedding technology to streamline assessments and enhance data-driven decision-making.
One notable success has been the introduction of Decision Focus's governance, risk and compliance system. Lacy says this has helped eliminate the use of spreadsheets and delivered a more up-to-date view of risk across the organisation. It has also encouraged the reporting of risk incidents by making it a much simpler and more visible process.
"We did a complete refresh of all the controls in the organisation to really understand what they were trying to achieve, and make sure we knew who the control owners were.
We also made sure those controls are there to drive performance. We don't want control management to be an afterthought," he says.
Talk of technology naturally leads to a discussion about the use of AI in the risk function and across the wider business. Lacy led the development of Canopius's AI governance framework and last year implemented an AI council to consider what technologies are being brought into the business, whether they are being implemented properly, and how they are being monitored.
He is a proponent of the use of AI, but is realistic about threats it might pose.
"This year we will be looking at how can we use AI, data and other technology to advance what we're doing – but then make sure we have a human behind it," he says, adding: "We have the same mantra in the risk team: making sure we use technology to advance what we're doing, but then allow the risk team to use judgement over the top of it."
Volatile geopolitics has brought other new challenges to the risk team, such as dealing with enquiries from the board about whatever latest threat has made the front pages.
"There have been lots of huge macro events happening – the phrase I use is 'grey rhinos' – where we need to understand how they impact us as business," he explains. To answer those kinds of questions, Lacy and his team have established cross-function roundtables to gain inputs from across the business.
The impacts sometimes turn out to be negligible, but the exercise has side-benefits in helping the risk team to build relationships with other teams, and earning trust.
Looking to the future, Lacy says one of his priorities is to ensure he keeps evolving with the company.
"It's easy to pause and then the company grows, and you get left behind.
Making sure that we continue to develop ourselves, is really important in being meaningful to the organisation," he says.
"Personal growth is important to me," he says, and in this he's not only referring to himself.
"We want to do pieces of work that really challenge and push people," he explains. In completing these difficult but useful tasks, members of the risk team sometimes catch the eye of other managers.
"One of the things I'm incredibly proud of is people who move out of risk into the business. Risk shouldn't be seen as the end of your career. The junior staff we're bringing in are engaging and curious, and are really adding value to the organisation."
The sentiment sums up a true champion of the risk function and a considerate and humble leader. As he pounds the streets of London later this year, it's easy to imagine him cheering on the other runners while determinedly reaching for his own goals.
- See who else won in the InsuranceERM UK & Europe Awards 2026
