Episode 5 – sponsored by Marsh
Task five #riskgovernanceandethics
In the fifth episode of The Insurance Apprentice, sponsored by Marsh Africa, apprentices put on their thinking caps when assigned with task five based on risk governance and ethics.
Over the last 30 years, ConsultCo has been recognised for its global reach, depth of experience, risk management and good corporate governance in running its business and dealing with its clients. Recently, the company has been accused of professional malpractice related to the approval of erroneous financial statements, ignoring questionable payments, enabling improper and imprudent client practices, manipulating earnings reports, breach of regulations, receiving and giving inappropriate gifts and entertainment, failing to uncover illegal sales practices and even potential corruption.
The broking firm
In seeking advice concerning the board’s duties around risk governance and ethics, the task for the day sees guest judges Christelle Marais, Chief Risk Officer and Teri Solomon, Directors & Officers Liability Expert at Marsh Africa, act as Chairperson and Chief Executive Officer of ‘ConsultCo’. They request an urgent meeting with the broking company (apprentices) after media coverage of alleged serious misconduct. The board is extremely concerned about future losses and reputational damage.
In preparation for their meeting with ConsultCo SA’s Chairperson and Chief Executive Officer the apprentices, acting as the broking firm, are requested to clarify the duties of the board in relation to risk governance, identify the risks faced by individual directors of ConsultCo SA, recommend appropriate risk mitigation strategies (including insurance solutions) and identify the risks (including potential consequences) that ConsultCo SA faces and provide advice on appropriate risk mitigation strategies (including risk financing solutions such as insurance).
Did the apprentices recommend and propose the appropriate risk mitigation strategies? Most importantly, did they win the client over? Hear the verdict and what judge Simon had to say in episode five.