Over 80% of our largest business’ market value is now held in intangible assets such as brand, data capability and intellectual property – up from 20% a few decades ago. This is a striking statistic which has huge implications for the risk community.

Understanding and managing these assets is a real challenge for organisations, and many are struggling to find insurance solutions to support their needs. However, while it is important that the insurance industry works hard to find effective ways to protect intangible assets, businesses must first ensure they have a thorough understanding of these assets and their vulnerabilities.

Risk professionals – whether insurance buyers or ERM specialists – must therefore embrace the changing world and the shifting business models and take time to understand them in the context of their own business. If they can’t coherently describe the value of their most important assets, how they are managed, what their vulnerabilities are and what the likely scenarios of loss are, then it will be very difficult to have an effective conversation with an insurer.

As a first step, risk professionals must do more to break out of their silo and engage in multiple conversations across the business. It is not possible to understand and tackle cyber risk, for example, without regular conversation with the CISO or equivalent. Likewise, building relationships with HR and comms is vital for understanding exposure to people risk and brand damage. This is easier said than done – not everyone welcomes another department getting involved in what they see as their domain.

Risk professionals must therefore learn to make a compelling case, to be persuasive, and to make it clear that their role is not to say ‘no’ but to help the business, and each department, be successful. When this is done effectively, risk management becomes a business enabler, something that helps businesses navigate the changing risk landscape. And when it comes to purchasing insurance, by being in a position to have an informed, meaningful conversation with their underwriter, insurance buyers will have a significant head start.

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