OneFamily's chief risk officer Philippa Herz reviews the key ERM developments of 2022, and the emerging risks that concern her most for 2023
What was the most positive ERM development of the year?
Operational resilience and third-party risk management frameworks were introduced in the UK in March.
This development has brought a better and broader understanding of our systems, processes, suppliers and contingency plans. It is also helping insurers to prioritise targets on operational risk and have deeper conversations with suppliers.
What was the biggest ERM disappointment of the year?
Although the Omicron variant of Covid-19 was circulating at the end of last year, we still started 2022 with a post-Covid optimism. However, then the war in Ukraine started. This has exacerbated many challenges creating a really difficult outlook for businesses, customers and communities as we start 2023.
What emerging risks are you most concerned about?
I am concerned customers don't have financial protection for these difficult economic times. I am concerned people won't be able to contribute to their savings and investments, nor continue with the life insurance cover they need.
I am also concerned about health issues, such as the impact of long Covid, and also the impact of delayed diagnoses and the effects of a constrained NHS health system.
How concerned are you about geopolitical risk in 2023?
Geopolitical risk has always featured high on emerging risk assessments. What has increased in recent years are the effects of geopolitical risk, such as economic risks due to global interdependencies and supply chains.
What's your favourite part of the Christmas holiday season?
This is family, friends and food, of course. It is also a time for reading. I am very keen on reading fiction, and find non-fiction books can be quite repetitive. For somebody who started their career as an actuary, it is actually words I really love, perhaps more than numbers.
With well-written fiction, what I love is the way the characters reveal themselves and that interplay of characters and their environment.
I recently read the book Wolf Hall by Hilary Mantel. While the novel is set some 500 years ago, I found its observations on power and politics are so relevant today. I really enjoyed the book and am hoping to read the next one in the series over the festive season.