Can we develop a fool-proof risk plan for every eventuality, asks Deepak Jobanputra

1 JULY 2012 | DEEPAK JOBANPUTRA

The world’s business news continues to be dominated by economic woes. The eurozone dilemma clearly has no easy solution and the effects of any action will not be digested easily or quickly. A close friend of mine often remarks that we were born in the wrong generation, but I believe we’ve never had it so good as we have more choice than generations past. Globalisation and technology allow us to explore the world and experience new lifestyles with relative ease, as shown by the overseas actuaries featured in our International Supplement.

The economic crisis, one could argue, has been driven by greed and excess. Packaged risks that few people, if any, really understood were created and traded with a view to growing markets and driving growth. This is clearly an oversimplification, but these were, nonetheless, key drivers. A lesson that risk specialists can and should influence is in developing a framework where the full spectrum of risks are considered.

Regulatory changes aim to address the shortfalls that have driven the crisis, but will these be sufficient and is there any ‘future-proofing’ that would still allow markets to grow and innovate? Only time will tell. I do believe that risk management will require much more reliance on underlying principles. If the level of resources being applied is anything to go by, we should see a marked improvement.

Our lead feature considers risk management and takes a unique perspective on safety. This is a great example of how actuaries can play an influential, albeit non-traditional, role. By considering measures that can improve lives and provide better outcomes, both financial and non-financial benefits can be achieved. The feature suggests a novel solution – wearing helmets while driving!
Talking of holding onto your hats, we cannot ignore the opening of the Olympics this month. If the UK can make the games as successful as the Queen’s jubilee celebrations, then we’re all in for an uplifting time.

Last but not least, we have an opportunity for a ‘wizard’ puzzles editor and an arts editor to join our team. If you are interested in either of these roles, please email editor@theactuary.com

Deepak Jobanputra
editor@theactuary.com