Emerging Risks

To respond to the growing need to better understand cyber and terrorism / violence vulnerabilities, JLT developed a unique approach to emerging risks evaluation.

Emerging risks

Our approach supports the identification and quantification of risks that are in a constant state of flux.

WHAT WE DO

Our core offerings include:

Cyber financial stress test – leveraging our in-house threat experts’ experience and expertise, JLT works with your key stakeholders and cyber risk owners to identify the most relevant scenarios related to cyber risk.

These scenarios are then quantified – based first on worst possible outcomes – then with sophisticated modeling techniques.

The result is a comprehensive measurement of insurable and uninsurable risks across first party losses / third party liabilities and downstream impacts on financial measures (such as EBITDA).

The benefit to your organization is greater awareness and understanding of your exposures. Our analysis drives clear recommendations, which can be communicated to your executive team and Board to inform decisions on where risk capital is best deployed to prevent and mitigate impact.

Violence threat impact assessment and modeling – as the threat landscape evolves, the risk of violence threats that can come from geopolitical situations or “lone wolf” actors continues to increase.

JLT’s approach to assessing violence threats is similar to that of our cyber financial stress test – it begins with understanding the most relevant threat scenarios.

From this understanding, unique tools for both three-dimensional, computational fluid dynamic modeling, as well as our Sunstone™ terrorism modeling, establish maximum foreseeable loss calculations for a myriad threats, including explosive risks, active shooters, drone attacks, and vehicle attacks.

WHY JLT

emerging risks

Our market-leading models provide a full understanding of the financial impacts of these scenarios, including lost revenue, business interruption, and casualty risks.

As a result, your organization is able to leverage this information to optimize insurance programs, as well as improve business continuity and disaster planning.

emerging risks

In the emerging risk area, our approach is like no other in the market – we approach each risk situation with a strong framework, but with the flexibility to characterize risk scenarios specific to each organization.

Case Study

A Fortune 50 company was seeking to quantify its technology-based risk at the request of the board. The focus was equally split between insurance program evaluation and uninsurable risks.

Our cyber financial stress test evaluated / sampled material risks across the value chain to determine critical values at risk and included 25 scenarios.

The modeling measured the financial impacts for each scenario, as well as examined frequency and severity including: insurance program efficiency, B2B impacts, and stock price movement that could trigger shareholder litigation.

Report results informed limits and retentions decisions across multiple insurance programs. The results enabled prioritization for compliance, internal audit, and IT departments relating to the risk class.

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