For natural resources companies, it’s not unusual to take 10 risks to the insurance market, but if they were considering three alternative insurance structures for each, they would be faced with 59,049 possible combinations of insurance options.
Leaning on sophisticated data and analytics is the gateway to pinpointing the optimal risk retention and insurance strategy for the business.
Key takeaways
- Think ahead. Having a clear understanding of the aspirations for the future of the business is the bedrock of decision-making.
- Work backwards. Using these objectives keeps risk and finance leaders on track when navigating rapid change and transformation.
- Harness data. Sophisticated modelling enables leaders to make optimal decisions on risk spend and deploying capital strategically.
Risk leaders: look ahead to make the right decisions today
While forecasting involves predicting the future based on current trends, backcasting approaches planning from a future perspective. If you set your objectives, you know what steps need to be taken to get there. By backcasting, natural resources companies can stay agile in responding to challenges with the end goal in mind.
The momentum behind the energy transition is growing. And risk leaders are challenged in making the right decisions today, to build a better tomorrow for their business. In achieving long-term ambitions, risk leaders need to optimize their strategies to unlock capital for growth.
Making an optimal decision: Eight steps natural resources companies need to take
With a more stable finance strategy, leaders can look to deploy capital in initiatives such as investments in technology or growth ventures with clarity and confidence.”Inti GomezHead of Risk & Analytics LatAm, WTW
Build financial stability for long-term growth
Speak your c-suite’s language – make the connection between opportunities, capital, return on investment, risk tolerance and cost on a strategic, multi-year, portfolio basis.
It comes back to backcasting. For natural resources companies to uphold their commitments as part of the energy transition, keeping the future objectives at the core of decision-making will keep companies on track. A short-term siloed risk strategy needs to be challenged.
Looking back on today, five years from now:
Backcasting: looking back on steps taken today
Demand more from your risk finance advisor. Future-ready companies are strategic about how to optimize risk spend to protect critical assets and operations, and build financial stability to move ahead with confidence.
Find out more about building a forward-thinking risk finance strategy
Disclaimer
WTW offers insurance-related services through its appropriately licensed and authorised companies in each country in which WTW operates. For further authorisation and regulatory details about our WTW legal entities, operating in your country, please refer to our WTW website. It is a regulatory requirement for us to consider our local licensing requirements.
