CESA Aon 2019

AON MESSAGE

Defining volatility “Before you can discuss the importance of risk readiness in a volatile environment, you have to define what ‘volatile’ is. South African businesses are faced with policy, economic, political, and labour force uncertainty. Climate change can now be added. “Volatility takes different forms and businesses need to adapt to what is important for risk mitigation for traditional and non-traditional risks,” he continues. “The biggest risk for the CESA member companies – also the biggest risk currently worldwide – is economic slowdown and slow recovery.” The danger with the slowdown in the economy is that it influences the risk preparedness of companies. “Across the country businesses are looking for ways to save money. They are making selective decisions around where they believe they can cut costs,” warns Williams. “In tough times companies accept a lot more risk – when there is not much work, everyone is fighting for a little piece of the pie. That is where the role of professional and qualified advice comes in. Aon’s Legal Risk Management Services provide a clear understanding of professional risk, and give specialist legal opinions and advice. Sustainability of clients Williams is clear about Aon’s role in the sustainability of clients. “Sustainability is the basis to achieving empowered results. No bank loans money for infrastructure without an insurance policy to back it up. We do not give ourselves enough credit for our role in empowering results, communities, and economic

possibilities. Insurance underpins all of that as it gives individuals and companies the ability to start again.” No one size fits all “With insurance, companies expect advice first and foremost. For consulting engineers especially, Aon South Africa offers a rich understanding of the business challenges on the continent. Businesses can no longer use insurance as a transactional type reward – it has to be a tripartite relationship: client, broker and carrier. In addition, it has to be a relationship that stands the test of time – only this will drive businesses forward,” says Williams. As a leading provider of insurance and reinsurance broking, risk consulting and employee benefit solutions globally, Aon has a unique understanding of the status quo in various industries, can leverage scale and has availability to take a global look and create solutions for South Africa. “Ethics and integrity play out across every aspect of insurance. As much as it is a contract in law, it is a contract in good faith and trust. Insurance policies are not written to deal with people’s integrity and ethics, they are written to support companies and those that work for them when it all goes wrong. We are an utmost good faith environment,” Williams concludes. z

A on’s 2019 Global Risk Man- agement Survey provides insight into the risks facing businesses in general. This survey is a web-based biennial research report that this year gathered 2 672 responses from risk decision makers in 33 industry sectors across 60 countries, encompassing small, medium and large organisations. “CESA’s focus in 2019 is ‘Reshaping the future together,” says Terence Williams, CEO of Aon South Africa. “We assist them in this quest.” CESA believes that all South Africans can be mobilised to participate and actively reshape South Africa’s economy, the country, projects, its government and ultimately everyone’s lives. “This focus comes down to Aon’s aim of achieving ‘empowered results’. As a business we aim to empower clients to get results,” says Williams. Aon’s 2019 survey ranks economic slowdown/slow recovery as the number one current risk. Even though the report places political risk at number 15, it is a major risk in South Africa. “Traditional risk mitigation tactics are not what they were. Risk mitigation is not uniform and this stretches across both the private and public sectors. “South Africa has entered into a market where capacity has dried up. Companies are now being forced by insurance companies to think differently about risk, its mitigation and their approach to these challenges. Companies firstly need to understand the risks and then find the best possible mitigation for those risks,” Williams explains.

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CESA AON ENGINEERING EXCELLENCE AWARDS 2019