Our recent columns explored how Paul O’Neill and Stanley McChrystal used institutional learning systems to better manage risk and optimize performance. Emerging science confirms their approach and the need to develop more leaders who can see the future of risk management.
Berkshire Hathaway - Retroactive Insurance Not Always Beneficial to Policyholders
An article in the Wall Street Journal, “Buffett Re-Examines Reinsurance”, by Anupreeta Das and Leslie Scism (Friday, July 3, 2015), discussed Warren Buffett’s favorite way of making money – through insurance.
Many commercial contracts contain risk-transfer provisions, including indemnification and insurance requirements. They should not be treated as boilerplate provisions and should be carefully reviewed to ensure that the language in the contract is clear, concise and does not contradict the language in the insurance policies.
Lori Siwik and Mark Siwik are the founders of SandRun Risk. They apply the principles of vertical leadership and lean six sigma to the discipline of risk management. From time to time they share their blog with guest authors who write about important risk management principles.