As Aon’s Financial Institutions industry leader, Jacqueline Quintal works to bring together firm-wide resources to develop and facilitate the delivery of industry-specific expertise, innovation, and strategic advice to clients.
Quintal partners with financial institutions to address exposures and tailor risk transfer and consulting solutions in areas including management and professional liability, cyber, property, casualty, environmental, health and benefits, due diligence, transactional solutions, operational risk, talent and compensation.
In addition to working with traditional banks, insurance companies and asset managers, Jackie focuses on emerging exposures for fintech firms. Jackie is particularly interested in innovation in the financial services industry and within Aon, where she plays a strategic role in identifying potential applications of new technologies
Christopher P. Skroupa: To what extent has risk management in a multi-national corporation changed in recent years?
Jacqueline Quintal: Risk has become increasingly complex and interconnected, and accordingly risk management has become more of a global issue. Many organizations operate with multiple global subsidiaries, across different business functions. This operational structure can mean that multiple individuals own risk functions, which makes it essential for risk management to operate across geographic and business unit boundaries.
Aon’s Risk Maturity Index, developed in collaboration with the Wharton School at the University of Pennsylvania, indicates that organizations with advanced risk maturity have a well-developed ability to identify, measure, manage and monitor risk; dynamic risk management processes that adapt to changing risks and business cycles; and a view that risk management provides a competitive advantage, with a focus on optimizing risk-reward trade-offs. The latest report released in November also examined the relationship between improved Directors and Officers (D&O) premiums and risk maturity. Organizations with a higher overall Risk Maturity Index score paid significantly lower premiums for D&O insurance. Organizations with lower premiums were all found to have greater transparency of risk communication, stronger risk identification of existing and emerging risks, a more formal process of gathering risk information, as well as sophisticated methods of risk analysis.
Skroupa: What are the drivers of change?
Quintal: The drivers of change are two-fold. There is the increased focus and scrutiny from a regulatory perspective. There is also other external factors, such as pressure from customers, particularly for expanded digital offerings, as well as from competitors and disruptors, some of which operate in a different regulatory environment. In light of these drivers, risk management has become increasingly relevant to strategic business decisions from the start.
Skroupa: What is the future of the CRO?
Quintal: There will be a continued focus towards strategic risk management and incorporating analytical insight. Rather than principally being an internal function, the CRO has an opportunity to use risk identification, risk management and, in some instances, risk transfer to inform strategic business decisions. This could be thoughtfully entering a new product area or introducing a new customer platform. Leveraging data and analytics can help shift the role of risk management to become more holistic as well as supportive of the company’s bottom line.
Skroupa: How has managing risk within an organization become more important?
Quintal: The majority of organizations participating in Aon’s Global Risk Management survey report having a formal risk management department in place. And, there is a correlation between company revenue and the likely existence of a formal risk management function. Seventy-six percent of respondents say they have adopted a formal or partially formal approach to risk management and oversight at the board level.
Three key trends increase the importance of managing risk – new risks are emerging, existing risks are evolving, and more capital is in play. Top risks are increasingly interconnected and risks that are currently difficult to insure are emerging as top concerns for global organizations, which makes organization-wide identification, quantification, and in some instances risk retention more important.
Quintal will be a moderator for two panels at the New Era for Regulatory Risk program. The panels are View from the Top: Managing Risk in the New Regulatory Environment and Evolving Role of the Chief Risk Officer: Before & After 2008 on November 30 in New York, NY.