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Clements Worldwide Risk Index (Summer/Fall 2016)

Clements Worldwide, a leading provider of international insurance solutions, releases a biannual report on global risk to help international organizations validate their present action
plans and prepare for different risk types. The latest Clements Worldwide Risk Index,
published on September 22, 2016, was based on data gathered from March to May 2016 from
409 executives responsible for global risk management. A majority of respondents, about
eighty-five percent, have more than 100 employees. Here are the highlights of the report:
The participants
The respondent-organizations are primarily composed of companies hiring more than 1,000
full-time employees in its home headquarters and international offices. Among the
respondents, 39% have total revenues equivalent to USD50M or more. Twenty-nine percent
have USD 10M USD50M in total revenues, 22% with USD1M USD10M and 10% with less
than USD1M revenues.
A third of the organizations are non-profit organizations (NGOs) or Development organizations.
The others are government contractors, construction firms, international schools, oil & gas
companies, etc.
More than half of respondents maintain headquarters in North America while 29% are in
Europe. Most of the respondents put highest priority on their operations in Europe, Asia and
South America.
Thirty-seven percent of respondent have 11%-33% of their staff assigned overseas while 36%
have 34%-75% of their workforce stationed abroad. Eighteen percent have 76% or more or
their staff overseas and 9% have a maximum of 10% of their employees work abroad.
Organizations with 11%-33% of their staff assigned overseas conduct 37% of their operations
outside their home headquarters in different countries.
According to 46% of respondents, the executive leadership oversees internal global risk
management for their organizations. About 27% have the task assigned to a Global Risk
Manager while the others rely on their Chief Financial Officer or Legal Counsel.
Global risk concerns
In Winter/Spring 2016, 27% of respondents claimed that global risk concerns caused their
organization to delay of abandon global expansion in the last 12 months. This rate rose to
35% in Summer/Fall 2016.

The top five risks blamed for the largest losses abroad of respondents over the past five years
are: business interruption, property damage, general liability, political/labor unrest and
personnel medical needs.
The top five risks respondents are most concerned about are: cyber liability, terrorism,
personnel medical needs, business interruption and property damage.
The top risk respondents feel most prepared to respond to during overseas operations is
personnel medical needs.
For 2016, 41% of respondents believe that they need to be more prepared for viral diseases
while 28% said that there should be greater access to better medical facilities. Meanwhile,
23% claimed that medical evacuation should be prioritized and 8% said that respondents
should have greater access to electronic medical records.
Over the past 12 months, 52% of respondents said that their international risks increased
compared to 45% who claimed that the risks they face abroad stayed the same. According to
3% of respondents, their international risks decreased in past 12 months.
In the past year, spending for the respondents business international insurance generally
stayed the same for general liability, group travel accident, business interruption, property
and kidnap & ransom.