The whole exercise is carried out using the techniques suitable for your industry and strategically suitable solutions are suggested for your requirements. Aon Global backed by their experience worldwide is capable of suggesting the strategy for risk avoidance & retention.

Risk Financing

Based on the risk profile, current structure of risk finance, loss history and risk tolerance of the organization, an optimal structure for risk finance is drafted, taking into account the possible use of forms of self-insurance like deductibles and currently available types of insurance.

Risk transfer mechanism consists of transferring the risks to insurers or to the third parties by contractual obligations. The exercise starts with a complete insurance audit of your risk exposures and deciding your risk profile. There is a broad range of insurance covers available. Aon Global can help you obtain the most appropriate insurance cover at optimum cost. Aon Global can also help you in the process of claim settlement in the unfortunate event of loss.

Risk Transfer - Alternate Risk Transfer (ART) Techniques

We can also help the client to develop and implement an integrated risk management programme using alternative way to transfer & finance their risk exposures. This involves providing solutions like Captive management, accessing alternative markets from outside the property – casualty insurance and reinsurance market, etc.

Risk / Loss control form the implementation part of process of Risk Management. This involves the whole range of detailed risk audits of the premises such as fire safety, fire systems, electrical safety, industrial safety, natural hazards & environmental and suggesting suitable solutions to mitigate the risks at economical cost. Also HAZOP & HAZAN services can be provided if needed.

Aon Global Insurance Brokers is able to properly identify, evaluate and analyze Risks and to subsequently design strategic Insurance Programs, according to the specific requirements of its clients.

This area offers a great variety of national and international experts providing optimal services such as on-site surveys for identifying complete range of risks ,mitigating solutions

• Loss source studies.
• Identification of unsafe conditions, actions and situations.
• industrial hygiene and safety surveys.
• Complete industrial safety audit.
• Fire prevention and control.
• Fire systems consultancy.
• Safety of electrical installation.
• Evaluation of atmospheric, water and soil pollution.
• Ergonometric study at work place.

Insurance related risk engineering services such as complete insurance risk survey, machinery breakdown survey, Post fire loss technical investigation, fire separation consultancy, feasibility study for Industrial All Risk policy, Rating advice

" A Bank must have … a risk management system that is conceptually sound and is implemented with integrity and … must demonstrate that its operational risk measure meets a soundness standard".

- Paragraphs 620 & 627, Basel Committee on Banking Supervision Consultative Document, April 2003

Financial Institution Operational Risk Management is receiving more and more attention in recent years. This is stimulated by recent incidents due to operational risks that have caused huge losses and even bankruptcies. Also the stakeholders such as shareholders and banking supervisors are showing increasing interest in operational risks, as appears from trends like corporate governance and plans for shifting capital requirements by the Basel Committee.

The advantages of good operational risk management system can take the following form:

• Banking regulators and supervisors will recognize good risk managed practices through a lower operational risk capital charge.
• Improved rating agency assessment.
• Higher investor confidence and enhanced customer perception.
• Use of sophisticated risk quantification models will enhance economic capital and capital allocation.
• Create a sustainable competitive advantage.
• Reduced cost of capital.

Aon Global can provide the following services in the Operational Risk Management field:

• Framework design, assessment and implementation.
• Data collection, assessment and management.
• Quantification, methodology and tools.
• Risk appetite / risk reward analysis.
• Process management, de-risking and improvement.
• Risk solutions design, build and implementation.

This has been made possible due to Aon’s vast risk consulting, risk management and risk solutions resources that has been harnessed to create a ‘Global Operational Risk Practice’ providing banking and financial institutions clients with the integrated blend of skills and experience necessary to optimize risk management and capital efficiency.

We can also provide clients with accurate and relevant external loss data through a product called ‘OpBase’ which is a collection of over 10,000 actual loss events in the banking sector worldwide.