Article

Guide to Risk Management for Financial Institutions

A guide to insurance solutions for financial institutions

March 23, 2017
| United States, United Kingdom

In the latest in Willis Towers Watson Wire’s popular guides, our Financial Institutions Group offers a series of articles on the basics of risk management, for financial institutions—primers, if you will, to help risk managers sharpen their understanding of the risk and coverage options in their industry.

Our subject matter experts explain each line of coverage, from what risks are covered (and not) to emerging issues in that line of coverage.

Masters Series for Financial Institutions

  • Guide to errors and omissions liability insurance for financial institutions
    by James Jackson
    Financial institution errors and omissions (E&O) coverage is a relatively modern policy. Legal claims asserting professional negligence only came to prominence in the 1970s; prior to that time legal actions against financial managers were extremely rare.

  • Guide to casualty insurance for financial institutions
    by Joe Peiser and Alex Levine.
    Casualty insurance is actually a catch-all term for a number of diverse coverages. The common thread that binds these various lines is that they are all concerned with losses caused by injuries. Casualty insurance helps manage the cost of legal liability imposed for injury or damage to the property of others. Many of these coverages are compulsory policies such as workers compensation or auto liability. The overarching principle behind all casualty coverages is the financial compensation to individuals, or the general public, for damages arising from injury caused by negligence.

  • Guide to basic economics behind insurance
    by Richard Magrann-Wells
    Why do financial institutions buy insurance? There is something counter-intuitive about one financial institution agreeing to guarantee the risk of another financial institution. To understand why any corporation buys insurance it is important to understand the economics and motivations behind a typical insurance transaction.

  • Guide to employment practices liability insurance for financial services
    by Adeola Adele
    The financial services industry has seen its share of employment practices liability (EPL) claims, dating back to a few high-profile gender discrimination class-action settlements (reportedly totaling in excess of $500 million) against major investment banks almost a decade ago, to a $160-million race discrimination class action settlement by another major bank in 2013 and a $18 million sexual harassment verdict against a private equity firm in 2015.

  • Guide to property insurance for financial institutions
    by Richard Magrann-Wells
    The purpose of property insurance is to provide critical financial assistance for a corporation in the event of a loss or damage to the assets of an enterprise—but there are many particulars that a novice will find perplexing.

  • Guide to Financial Institution Bonds
    by Richard Magrann-Wells
    Any institution that is involved in the provision of financial services to third parties needs to consider some form of financial institution bond.

  • Guide to Political Risk Insurance for Financial Institutions
    by Alexander Van Kuffeler
    For financial institutions, political risk insurance is bought to protect against default under a loan agreement or lease as a result of political risk event.

  • Guide to Comprehensive Nonpayment Insurance for Financial Institutions
    by Alexander Van Kuffeler
    Comprehensive nonpayment policies cover an insured against an insolvency or protracted default by a customer, counterparty or borrower.

  • Guide to Political Violence and Terrorism Insurance for Financial Institutions
    by Luke Bennett Luke
    Terrorism and wider political violence policies are designed to pick up the gaps left behind by exclusions in property policies.

  • Guide to RFPs for Financial Institutions: To Bid or Not to Bid
    by Zakia Phillips
    The process of putting an insurance program out to bid e.g. a request for proposal (“RFP”) can be very time consuming. The decision to do so cannot be taken lightly.

  • Guide to Network Security and Cyber Coverage for Financial Institutions
    by Silvi Wompa
    Data breaches are an inescapable fact of life. The purpose of cyber insurance is to mitigate risks of data breaches and  significant costs resulting from them.

  • Guide to Directors & Officers Liability Insurance for Financial Institutions
    by Ryan Wenzel 
    D&O insurance policies offer liability coverage for company managers to protect them from claims that may arise from actual or alleged “wrongful acts” when acting in the scope of their managerial duties or while serving on the company’s board of directors. 

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