This year's winner of risk team of the year has been recognised for its support of a growing business, delivering measurable improvements in risk culture, and championing talent and inclusion.

The team at Canopius – a specialty, property and casualty re/insurer that includes a Lloyd's syndicate – is led by chief risk officer Sheldon Lacy (also winner of this year's InsuranceERM's 'CRO of the year' award) and group risk director Candace Steele.

Since its acquisition of AmTrust in 2019, Canopius's annual gross written premiums have climbed around 130%. Alongside this, the risk team has grown to a team of 13 worldwide, with commensurate improvements in risk frameworks and management systems that have helped streamline assessments and enhance data-driven decision-making.

Lacy explains: "The team is led from London, but over the last 18 months we've grown internationally. One of the things I like is the risk team being close to where the risk is being taken and so we've built a risk team in the US, Bermuda and in APAC."

Proximity to the business is a defining element of the risk team's approach. Steele emphasises the team's contribution to profitable risk-taking is improved by "being in the room more often" so they can know what's going on and can add value through constructive challenge to decisions.

One practical example has been the risk team's response to questions from the business and the board about the big macro events in the world; how issues such as inflation, conflict and geopolitics might impact the business. To answer these questions, Steele ran a series of roundtables, bringing together representatives from all parts of the business, from claims to underwriting and operations, to gain their perspectives.

Building relationships

Aside from the useful discussions, Steele says the exercises have helped build relationships between risk and the business, and between other functions – for example, cyber underwriters and Canopius's cyber security teams.

Steele also runs an annual risk insight exercise, polling the four business units in the UK, US, Bermuda and APAC to understand their key risks. Lacy says the results often show different regions have different top risks, and this reinforces the concept that "we don't just do a one-size-fits-all for risk management. We can lean into the business and support what's going on locally, as well as then escalate that up to the group risk process."

Strengthening the risk culture at Canopius has been a priority for Lacy and Steele, and this has been achieved through a combination of process, technology and behavioural measures.

One particular effort has been around reducing the culture of fear in reporting a risk event. Lacy puts much emphasis on the informal processes: ensuring risk team members are physically present in the business, so people can catch up around the watercooler, and the ability to have "dead-end conversations" where people can offload their concerns without formally escalating it.

Formal risk reporting processes have also been revamped. From one click on a prominent button on the firm's intranet, staff can now initiate a risk incident report. This has come alongside investment in a new governance, risk and compliance system, based on Decision Focus software, that has streamlined risk governance – and with an internal marketing campaign to encourage use. "We make it simple: there's a text box where people can tell us what they know, and we can take it from there," says Steele.

The firm says the number of events reported to the risk team rose by 55% in the quarter after the systems were introduced. "We're really trying to build that trust in the organisation, which I think is working well," Steele says.

Inclusion

Canopius's risk team is also proud of its commitment to inclusion and diverse talent.

Steele says different backgrounds and experiences are vital to creating the challenge that risk teams need to provide to the business. In practical terms, Lacy says the firm avoids going down familiar routes for hiring, such as demanding five to seven years' London market experience. Steele herself brings a Bermuda reinsurance background, and others have come from accounting, for example.

The firm supports initiatives that develop pathways into insurance careers, such as Empower Her, which provides education and support to female talent in the organisation, and the Lloyd's Advance programme for developing future female leaders.

Creating a pathway for the risk team to develop their careers at Canopius is also vital for diversity, Steele adds. Among the practical actions, she encourages risk team members to join underwriters' training sessions, so they don't just learn, but build relationships too.

Lacy sums up: "We want a winning culture, but we also want a culture that encourages people to be themselves and be a part of what we're building here."