Best Practice Companies in Risk Management Craig W. Roggow

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Introduction Risk management acts as a fundamental element in any company. Risk management acts as a fundamental element in any company. AIG and AON are excellent model companies in risk management. AIG and AON are excellent model companies in risk management. The similarities and differences of both firms are examined in this presentation. The similarities and differences of both firms are examined in this presentation. They have been exceptional in the global insurance sector. They have been exceptional in the global insurance sector.

Objects of this Project Analyze what these best practice companies do in Risk Management. Define the similarities between AIG and AON. Describe major differences between AIG and AON. Critique AIG and AON best practices. Implementing best practices.

Best Practice Company: American International Group (AIG) Offers extensive services in risk management. Offers extensive services in risk management. AIG has a foothold in over 120 countries AIG has a foothold in over 120 countries The clientele for AIG is highly diverse. The clientele for AIG is highly diverse. Provides competitive premiums for the different risk management products. Provides competitive premiums for the different risk management products.

Relevance of AIG to this Study An outstanding company in risk management. An outstanding company in risk management. AIG’s operational framework is an excellent model that exemplifies how companies can minimize risk. AIG’s operational framework is an excellent model that exemplifies how companies can minimize risk. AIG has been highly efficient in offering competitive premiums AIG has been highly efficient in offering competitive premiums AIG uses excellent strategies while seeking reinsurance services AIG uses excellent strategies while seeking reinsurance services

Best Practice Company: AON Plc. AON offers both reinsurance and insurance services AON offers both reinsurance and insurance services Principal insurer of some of the world’s largest organizations and brands. Principal insurer of some of the world’s largest organizations and brands. Products includes terrorism, political, environmental, and database risk management. Products includes terrorism, political, environmental, and database risk management. Scope covered by AON ranges from the aviation sector to higher education. Scope covered by AON ranges from the aviation sector to higher education.

Relevance of AON to this Study AON has consistently been profitable. AON has consistently been profitable. The company’s practices can help in determining suitable types of insurance for different risks. The company’s practices can help in determining suitable types of insurance for different risks. AON practices provide an excellent framework for understanding the effectiveness of different agency systems. AON practices provide an excellent framework for understanding the effectiveness of different agency systems.

Similarities between AIG and AON Both AIG and AON have global footholds. Both AIG and AON have global footholds. They offer multiple insurance solutions for numerous industries. They offer multiple insurance solutions for numerous industries. They use the independent and exclusive agency systems for marketing. They use the independent and exclusive agency systems for marketing. They offer specialty-underwriting solutions They offer specialty-underwriting solutions

Differences between AIG & AON AON offers extensive brokerage services but AIG does not. AON offers extensive brokerage services but AIG does not. AIG does not offer reinsurance solutions like AON. AIG does not offer reinsurance solutions like AON. AON offers extensive outsourcing services, AIG does not. AON offers extensive outsourcing services, AIG does not. Compared to AIG, Aon plc is a relatively new company in the global insurance sector. Compared to AIG, Aon plc is a relatively new company in the global insurance sector.

Differences between AIG & AON (cont.)

Critique of Best Practices: AIG and AON The premium rates offered by both companies are considerably flexible. The premium rates offered by both companies are considerably flexible. The best-practice companies have also been effective in the choice of agency systems for marketing. The best-practice companies have also been effective in the choice of agency systems for marketing. The diversity of risk management solutions at AON has greatly cushioned the company from potential losses. The diversity of risk management solutions at AON has greatly cushioned the company from potential losses.

Implementing Best Practices Implementation requires a thorough evaluation of the different risks. Implementation requires a thorough evaluation of the different risks. The premium rates for different risks might vary. The premium rates for different risks might vary. It is essential to be covered by a firm that offers great diversity in terms of risk management solutions It is essential to be covered by a firm that offers great diversity in terms of risk management solutions The risk management framework must be highly flexible. The risk management framework must be highly flexible.

Conclusion AIG and AON are excellent model companies in risk management. AIG and AON are excellent model companies in risk management. The latter is a British firm while the former is an American entity. The latter is a British firm while the former is an American entity. These companies are characterized by excellent standards of dynamism in risk management. These companies are characterized by excellent standards of dynamism in risk management..

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