It is scarcely necessary to look beyond the Turnbull report to see what elements a risk management strategy should contain. Since integration into overall management is fundamental, the nature of that strategy must reflect the business concerned. Naturally, as a law firm, we are bound to focus on how lawyers contribute to the process. But the key to success is undoubtedly the creation of a balanced team. The obvious members are those technically qualified to evaluate the risks. More difficult is the inclusion of relevant stakeholders from within the business. It is vital that commercial managers participate. Insurers must also be represented, so that the insurance program reflects the identified risks.
To secure the necessary participation and co-operation at an appropriate level, the benefits of involvement must be clear, which returns us to where we started: the importance of a clear analysis of why the business needs to manage its risk if it wants to maximise shareholder value.