Client Risk Solutions Going beyond insurance. Risk solutions for Financial Institutions. Start

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1 Client Risk Solutions Going beyond insurance Risk solutions for Financial Institutions Start

2 Partnering to Reduce Risk Financial Institutions compete vigorously to maintain profitability and deliver superior service to demanding customers, against a backdrop of rapid innovation, amplified regulatory pressures, and global uncertainties. These challenges create vulnerabilities that must be managed proactively and efficiently. AIG s Client Risk Solutions (CRS) partners with our clients to lower their total cost of risk. We take a holistic approach to identify and manage complex risks through a broad range of consultative services, leading edge analytics and modeling, and an ever expanding suite of innovative technologies. Financial Institutions risk profile Property Substantial, multinational real estate investments, often in coastal locations. People Highly skilled workforces and clientele in dense population centers. Performance Complex operations exposed to business interruption, terrorism and cyber security risks. Market Segments Financial Institutions Private Equity Asset Managment 2

3 Client Centric Analytics: From Insight to Response Client Risk Solutions takes businesses on a multi-stage journey through risk. From identifying and quantifying exposures to developing mitigation and response plans, CRS offers clients a continuous approach to managing risk, designed to lower their total cost of risk. Identify Business Exposures Quantify Likely Impacts Reduce Risk Effects Respond During & After Extreme Events RISK INSIGHTS CUSTOM ANALYTICS RISK MITIGATION EVENT RESPONSE Data Analysis & Exposure Summary Natural Catastrophe Supply Chain Analytics Industry Tailored Solutions: Wearable Technology & Telematics Emergency Response Planning Benchmarking Against Peers Safety Security Cost Benefit Analysis Property Risk Engineering Crisis Management Identification of Major Loss Drivers Cyber Fraud Business Continuity Planning Liability Risk Consulting Drone Inspection Services DIAGNOSTICS CONSULTANCY POST EVENT SUPPORT 3

4 Property Risk Solutions Financial Institutions face substantial natural and man-made property risks to their operational centers in dense urban locations, as well as to their passive real estate investment portfolios. Client Risk Solutions provides a number of property risk engineering services designed to identify, assess and reduce these exposures, both on existing buildings and those under construction. Key Risk Solutions for Financial Institutions Risk Assessment Identify, assess and reduce property exposures before they interrupt business activities and ensure robust business plans are in place should such an event occur. Construction Risk Identify risks associated with design deficiencies, fire protection, water damage and commissioning. Develop a program to mitigate and minimize exposures. Appraisal / Valuation Assist in evaluating adequacy of physical asset valuations to improve insurance, collateral and tax programs. Advanced Natural Catastrophe Modeling Blend of external and proprietary analyses to assess property portfolio losses for a range of perils including earthquake, windstorm and flood. Natural Catastrophe Risk Engineering Assessments Desktop exercises combined with on site surveys to identify cost effective recommendations to help reduce future risks. Success Story: Flood Risk An investment in an international real estate portfolio was at risk due to uncertain exposure from flood, specifically the lenders were concerned that a substantial number of locations were particularly prone to flood risk. To conclude the transaction, they required outside assurance. CRS worked with the broker and client to source location data and applied AIG s proprietary flood models augmented by risk engineering assessments to determine a more precise view of the inherent risk. Finally, the lenders were reassured, and the transaction proceeded. 4

5 People Risk Solutions Financial Institutions that maintain large networks of retail branches face common safety hazards among their employees, who are prone to recurring and accidental injuries, and among their customers who frequent the branches. Client Risk Solutions risk consultants are available to assist in the development and implementation of a range of safety programs. Key Risk Solutions for Financial Institutions General Liability Incident investigation and management policy reviews, complaint management process evaluation, facilities review, workplace violence susceptibility assessments and security reviews. Worker Safety Risk management services, best practice assessments, training program development, ergonomic evaluations, regulatory compliance assistance and industrial hygiene services. Physical /Travel Security Assessment services to improve resiliency, life safety and physical asset protection. Terrorism Risk Assessment Assess vulnerability to terrorist & active shooter attack. Facilitate SAFETY Act designation. Client Centric Analytics Analytics, using AIG loss data, provide actionable insights to inform clients of opportunities to reduce cost of risk. Success Story: Terrorism and Physical Security Security challenges surrounding mass casualty events are at the forefront of many clients minds. The liability from such an event could be ruinous in the extreme to businesses and institutions. Risk managers want to know what they can do to fulfill their duty of care. Even as growth in spending on anti-terrorism and related measures may out-pace other budgetary priorities, they want to know how to estimate returns on these investments. CRS helps to put these risks into perspective for real estate tenants and employees and explain the return. We also help clients find cost-effective measures to make their tenants and workforce more resilient. 5

6 Performance Risk Solutions Financial Institutions face a broad range of risks that may impact their business performance. From emerging cyber risks to business interruption and reputational risks that flow from all of the above. Client Risk Solutions can draw on a range of resources to minimize these disruptions. Key Risk Solutions for Financial Institutions Business Interruption and Continuity Review and quantify distribution exposure to facilities and supply chains. Develop and test business continuity plans through scenario analysis. Cyber Security Depending on client needs, a range of services including: Assessment of client internal process, policies and infrastructure System testing and probing for vulnerabilities, from an external hacker s view Incident Simulation Workshops to pressure test current incident response protocols Executive threat briefing to C-level or Board, on latest hacker tactics and defenses Marine Cargo Security Consultation on the development and/or enhancement of a client s supply chain security policy and procedures. Audit of facility and/or transit supply chain security procedures to ensure adherence with contracted requirements and/ or industry best practices. Relevant for clients that trade/store commodities. Enterprise Risk Management Facilitated workshops with executives to identify and prioritize key risks and cost/benefits of mitigation options. Success Story: Leveraging Analytics Leading up to the renewal of our insurance contract with a major European Financial Institution, CRS Analytics produced insights from five years of travel and product protection claims under its consumer credit card program. We identified certain concentrations of claim activity by travel destination, and by product purchased, even by day of week of the purchase. These findings will help the bank s marketing colleagues to hone their value proposition and retain valuable banking customers who pay for merchandise and travel expenses with their credit cards. In this way, CRS is helping the client s top line beyond managing bottom line risk. 6

7 For more information American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange. Additional information about AIG can be found at and YouTube: LinkedIn: These references with additional information about AIG have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds American International Group, Inc. All rights reserved USAL