Global pandemic. Economic volatility. A new “normal” for organisations in every industry. 2020 has been a remarkable year for emerging risks, and one of the early lessons is the need to enhance resilience. Captive entities, which have long been a reliable tool for financing and mitigating risk, are proving their worth as equally valuable tools for making organisations more resilient.
As the rapid emergence of the coronavirus pandemic has shown, preparedness for interruptions from future risk events will be increasingly important. As severe as the impact of Covid-19 is, other risks continue to raise concerns, such as cyber risks and energy disruptions. The need for resilience in the face of emerging risks has perhaps never been greater.
In this article, Steven R. Bauman, Head of Global Programs and Captive Practice in North America, AXA XL, focuses on the specific ways captives enable businesses to be more resilient, whilst also financing and mitigating risks.