Insurance Executive’s View on Gulf Oil Spill and Risk Assessment

The Risk Management Monitor recently posted a piece on a conversation with Bill Berkley, chairman and CEO of W.R. Berkley Corporation.  W.R. Berkley Corporation was founded in 1967 and is now the 18th largest property and casualty insurer in the U.S.  When the conversation turned to his thoughts on the Deepwater Horizon spill, he responded:

I don’t think it’s an enormous lack of risk management in the offshore drilling industry, no. I think it was more a lack of understanding of all the alternative things that could go wrong.

Generally, risk identification/assessment go hand-in-hand with risk management, so perhaps it isn’t critical to differentiate.  But it is difficult to argue with someone as knowledgeable and successful as Mr. Berkley.  Either way, it is critical that companies understand and evaluate a much wider range of risks/failures than perhaps was done in the past.

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