Insurance companies urged to prioritise risk management

Insurance companies in Ghana must learn from the current development in the banking sector and take risk management issues very seriously, Managing Director of Ghana Reinsurance Company Limited, Mr George Y. Mensah has said.

Speaking at the Ghana company’s ninth Cedant’s awards ceremony held in Accra, under the theme “The advent of enterprise risk management and its impact on the financial sector, “he said, the recent collapse of  banks could be linked to the fact that, they fell short as far as risk management is concerned.

He said, “There is the need for institutions in the financial sector, especially insurance companies, to seek ways to improve risk management in their business operations, “he said.

He said enterprise risk management had been adopted my many companies across the globe to help identify their risks and how best to mitigate or reduce losses.

“A successful enterprise risk management process can help an organisation manage many of their challenges and ensure the implementation of appropriate risk controls to limit risk to targeted levels,” he said.

He stressed that, the widespread of enterprise risk management had been embraced by both companies and external stakeholders as a means of averting business missteps and increasing confidence in attaining desired business outcomes.

The risk management framework he said would ensure a more proactive management of risks, institution of appropriate mitigations measures as well as ensuring an effective disaster recovery and business continuity management.

Ghana Re in view of that, he said had organised seminars since last year to educate industry players on effective enterprise risk management and how to apply it to adequately achieve the goals of the company.

Mr Alhassan Andani, Managing Director of Stanbic Bank who was the guest of honour also cautioned institutions to not to ignore risk management in their operations.

He added that, politicising every issue in the country had also contributed to the non-existence of enterprise risk management in the country and its related issues.

Commissioner of Insurance, Justice Ofori said adequate skills and innovations must be adopted by insurance companies in order to stay relevant and achieve desired results.

He said local capacity must be utilised and industry players must make use of available technology to run their businesses effectively.

He congratulated award winners for their efforts and urged other insurance companies to do well in order to be recognised.

Trophies and plaques were presented to companies who were supportive of Ghana Re’s commitment to the growth and development of local expertise in insurance and related fields within the 2017 financial year.

Hollard Insurance Ghana Limited, walked away with the ultimate Cedant of the Year, General Business award with other companies including KEK Insurance, Enterprise Life, Ghana Union Life Insurance, Metlife Insurance and My Life Insurance settling for special awards on the night.

 BY MICHAEL D.  ABAYATEYE

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