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Barnett Waddingham
0333 11 11 222
Most businesses are operating in extremely complex and uncertain conditions and at the same time must take risks to meet ever expanding growth ambitions.  Effective risk management is now more than ever a necessity for both survival and growth. 

We work closely with our clients to apply practical risk-based solutions to truly mitigate, manage, and optimise risk. Our experienced team of risk practitioners and actuaries combine qualitative and quantitative methods to a variety of business problems to deliver real business insights and impact.

Senior Partner, Nick Salter explains how we are diversifying our services to meet the on-going needs of our clients.

Our approach begins with understanding our client’s unique business challenges starting with a holistic view; we then apply a proportionate use of analytics and quantitative methods to inform commercial decisions; followed by practical and innovative problem solving in partnership with clients that make a real difference in risk exposures.

Innovative and intelligent analytics, combined with industry leading expertise in prevention enable us to help organisations effectively manage the cost of risk associated with liability and claims. Whether you retain a portion of risk or fully transfer, we know the costs associated with claims impact the bottom line.

Our actuarial capability, combined with an unrivalled knowledge of claims prevention and defence strategies creates unique insights around cost drivers. Working in partnership with you, these insights facilitate the design of achievable intervention strategies that target sustainable reductions in claims cost of risk. See more here

Most organisations have the technical aspects in place, some more developed than others, however many still struggle to gain value from these activities.  Barnett Waddingham has developed its own risk maturity model against which it can benchmark clients’ risk management practices proportionate to their size, complexity and risk exposures.  We understand how to apply best practice risk techniques and seek to evidence whether softer elements of risk culture are in place, to pass a ‘use test’.

Scenario analysis, stress-testing, and reverse-stress testing

There are also several actuarial techniques that involve modelling a wider portfolio of risks and scenarios. These are useful to help understand how a business is likely to perform under different scenarios, and under what extreme circumstances the business would fail.  Knowing this extreme limit through a reverse-stress test, the business can then seek to better understand and prevent the factors for this scenario to materialise.  This might also inform the level and types of insurance to be purchased.

Read a case study that demonstrates the application of these techniques here

Businesses are full of risks; some they want to take, others they wish to avoid.  Some seem to come from no-where while others are business as usual, yet they all have the potential to derail the business, could have material cost impacts and could severely impact reputation.  An enterprise wide risk assessment helps the Board or Executive team focus on what really matters.  For some of these key risks, we may wish to conduct a deeper bespoke risk assessment to inform the strategy and the investment necessary to manage the risk.  We will typically recommend a proportionate use of data and quantitative techniques to support these decisions.

Project Managers are typically expected to manage risks in projects. For large scale, high criticality, or high risk projects, a specialist project risk manager that has a holistic view of the business and seeks to manage risks as an enabler to project success may be a more appropriate solution.  Barnett Waddingham has demonstrated its ability to proactively manage risks using simple, traditional techniques.  Where appropriate to do so, we can also help to implement forward looking risk-adjusted statistical analysis that helps identify project delays or over-spends earlier.

Read our innovative risk management for a FTSE100 company case study here.

There are a number of quantitative techniques that can be used to analyse risk and optimise outcomes that inform specific investments, programmes or business decisions.  We specialise in problems where the solutions are not immediately obvious or where ‘softer’ risk considerations could impact on the chosen option.  We work with clients to identify suitable techniques and carry out the relevant analysis that supports good governance and effective decision making.

Read about risk optimisation here and optimising risk and returns to inform decision making in the Oil & Gas Industry here

How precise is your forecasting?  Do your internal models sufficiently consider risk and volatility?  How do these reflect changes in your risk profile?  Given the increasing risk in global markets and the mounting pressure to meet market and shareholder expectations, some businesses are considering better alignment between existing risk analysis and planning, budgeting, and forecasting tools.  This provides more credibility and demonstrates process maturity.

We see the most risk-mature organisations embedding risk and analytical techniques into other business processes i.e. considering risk when prioritising key customers and suppliers and managing each category differently; having more robust controls for only high risk transactions; giving different compensation and benefits as well as employment terms for key employees.

Read about actuarial insights into customer loyalty programmes here.

“I have spent my entire career in Enterprise Risk Management holding both in-house and advisory roles. I’ve seen the profession evolve, learning what not-to do as well as seeing the power and potential of truly effective risk management in driving strategy, commercial decisions and real business change. ”
Danny Wong

Related knowledge and resources


  • Achieving higher returns with lower risk

    We were appointed to advise a client with ~£400m of assets in 2015 and this case study sets out how we worked with the trustees and employer to ultimately reduce risk and increase expected returns while working towards an agreed objective.

  • An out of control deficit

    We provide a regular funding and investment monitoring service to the trustees of a £40m scheme. We were asked to review the funding and investment strategies of the scheme, in particular with a view of reducing the risk of the deficit increasing further.

  • Contingency planning in action

    A client was looking to develop a financial management plan for the scheme, targeting a fully de-risked and liability matched investment strategy and moving on to buy-out. The plan aimed to strike a balance between reducing risk and business needs.

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