Mastering Risk Management

RISK MANAGEMENT AS A MARKETING TOOL

An additional benefit of risk management is as a marketing tool. A good example of this is Volvo, which has turned safety into a marketing and sales opportunity. Safety is an attribute which is expected by the motoring public to be built into its cars, as it is an excellent mitigant of a number of motoring risks. However, Volvo has very successfully managed to use an inevitable risk control as a marketing and sales differentiator.

Similarly, in the financial services sector, many firms go beyond the regulatory requirements for the reporting of risk within their reports and accounts. One of the three pillars of Basel II1 of the banking international regulations was the disclosure of information about the bank’s ...