Lord Levene, Chairman of Lloyd’s, has called for all businesses to make risk management a key priority.

Writing in an article for the Financial Times, Lord Levene said: “Every business takes risks, and in today’s world those risks simply must be well managed to ensure success. Everyone involved, from the coal face to the board room, has to understand the risks they face, know their limits, and be prepared in case things go wrong.

“But risk management is not simply about preparing for the worst. It’s also about realising your full potential. With a clear understanding of the risks they face, businesses can maximise their performance and drive forward their competitive advantage.

“Yet research carried out by Lloyd’s last year showed that not enough is being done on this by businesses across the world. This has to change.”

“Effective risk management ensures that a good understanding of risk is backed up by the right appetite, capacity, and controls. In today’s increasingly risky world, and particularly in the insurance industry, I just don’t see how any business can survive without it. It separates those who are educated, careful risk takers, from those who are simply gamblers.”

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•Date: 20th October 2006• Region: UK •Type: Article •Topic: BC general
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