The ALS Group Risk Management Articles

The first step for many businesses seeking to operate abroad usually involves the transport of goods internationally. Initial shipments are often vital to the success of the venture, so protecting them in case of a catastrophic event is as important as getting the shipments to their proper destination. This is especially relevant considering the recent natural disasters that have affected the shipping trade. Carriers who write Ocean Cargo have suffered a spate of heavy losses, and as a result are actively seeking to narrow their exposures. Ocean Cargo Insurance is subject to less stringent regulation than other types of coverage as state regulators do not require rate and form filing.

Recently, ABC News was hit with a $1.2 billion defamation lawsuit by a meat processing company that accused the network of misleading viewers into believing that their product was unsafe. The company filed its complaint alleging ABC “knowingly” and “intentionally” published nearly 200 false, defamatory and disparaging statements in on-air and online reports, and in social media postings. They claim this ultimately destroyed their reputation by causing major consumer backlash which, subsequently, impacted revenue as several of their national customers publicly vowed to discontinue selling their product. The lost revenue (over $20 million monthly) forced the meat processing company to shut three of its four plants and eliminate more than

An indication of how Enterprise and Strategic Risk Management have become discussion topics in all circles of the business world is the fact that Business Insurance Magazine has devoted a recent issue solely to this topic.  The issue contains numerous articles that range from discussing Risk Appetite, to how ERM can become the spring board for a company’s Strategic Risk Management program. The magazine also describes success stories of companies such as Lego and Paychex who utilized Strategic Risk Management to increase their company’s profits even in these tough economic times.  However, it was an article in the Perspectives section of the magazine that stood out in its honest assessment

A major consideration for American Companies doing business abroad is the Foreign Corrupt Practices Act of 1977. This far-reaching piece of legislation is both largely misunderstood and incredibly broad in scope. The classic images of briefcases full of cash slipped under the table or millions siphoned into private bank accounts are part of it, but the Act can extend towards much more innocent activities. The Department of Justice can bring proceedings against a company for the conduct of a “stockholder acting on behalf of a firm” (say, an agent, or a local sales representative).

Ever eye a bowl of potato salad or plate of chicken that’s been sitting in the sun for hours and wonder if it’s still okay to eat?

Highlighted by a Questions and Answers article in the recent issue of Risk Management Magazine, Enterprise Risk Management (ERM) continues to gain exposure through the successes of companies that are taking the initiative to establish a firm ERM culture. The article, entitled “Creating Value with ERM”, looks at the success of Paychex, Inc., the company that received the inaugural “ERM Award of Distinction” last year. In what ways can this interview with Paychex’s Risk Manager relate to your company and allow for ERM to become embedded in your organization?