LeAnne McCorry is the resident managing director for Aon Risk Services Inc. in Detroit, where she oversees the operations in Michigan. McCorry’s concentration is in developing client-specific services strategies, designing individualized approaches and building associated teams of resources necessary to meet client needs. She has been with Aon since 1991, where she began as an assistant vice president.
Q. Are companies facing different risks with the present state of the economy?
It is clear that the current economic slowdown has impacted most organizations and is the No. 1 risk noted in our 2009 Global Risk Management Survey. In a deteriorating economy, the lack of available credit makes it difficult for businesses to operate and grow. As job losses escalate, consumer spending decreases. This, in turn, creates a downward spiral of fewer jobs, reduced spending, economic contraction and further tightened credit guidelines.
Q. What types of insurance should companies be covered under today?
Whether in good times or bad, the types of insurance protection that companies should purchase should not change drastically. However, companies may wish to review the adequacy of certain coverages, such as for business interruption caused by the loss of a supplier. In times like these, it is important to understand what coverage your policies provide and what they do not. Beyond the coverage question, we ask, ‘How much risk can your organization retain?’ Optimizing your insurance dollars to provide greater catastrophe protection rather than trading dollars at the bottom is a better solution.
Q. How will managing risk help a company’s bottom line?
When we talk to clients, we tell them that, while the magnitude and scope of risk is increasing, this heightened level of scrutiny also brings opportunity. Companies that manage their own risk properly are better positioned to execute on the upside of risk and manage or contain the downside of risk. This can create an advantage for clients, improve their balance sheet and positively impact the bottom line. Effective risk management can help assure the current and future health of the organization and support profitable growth.