GLOBAL LOGISTICS CONVENTION 2018 RISKS IN THE TRANSPORTATION SECTOR

Transcription

1 GLOBAL LOGISTICS CONVENTION 2018 RISKS IN THE TRANSPORTATION SECTOR 18 SEPTEMBER 2018 Alex Mukasa Marsh Uganda

2 WHO IS MARSH? A global leader in insurance broking and risk management. We DEFINE, DESIGN and DELIVER innovative solutions which help clients unlock new opportunities for growth with operations in more than 130 countries. To every client, we bring an unmatched combination of deep intellectual capital, industry-specific expertise, global experience and collaboration. Marsh Uganda is the pre-eminent insurance broker and risk advisor in Uganda. With over a two decades experience, we combine global resources, and the local knowledge to provide our clients and prospects with numerous strategic benefits enjoyed around the world. Marsh Uganda is committed to assisting our clients in the protection and enhancement of their businesses through advice and solutions in risk.. MARSH September 17,

3 MARSH & MCLENNAN COMPANIES WHO WE ARE A global professional services firm of approximately 60,000 colleagues in more than 130 countries, offering clients advice and solutions in the areas of risk, strategy and human capital. MMC is the parent company of: MARSH, a global leader in insurance broking and risk management; GUY CARPENTER, a global leader in providing risk and reinsurance intermediary services; MERCER, a global leader in human resource consulting and related services; and OLIVER WYMAN, a global leader in management consulting. MARSH 17 September

4 MARSH AND MCLENNAN COMPANIES MARSH 17 September

5 INDUSTRY EXPERTISE TRANSPORTATION Recognising the specific challenges facing transportation companies, Marsh has established a team of professionals whose role is to share knowledge, expertise and best practice to ensure that all of our transportation clients are kept fully informed on risk issues and developments and bringing intellectual capital and service delivery to all Marsh s transportation clients across the whole industry spectrum. Our client s scope of business activities includes: transportation of people or haul freight by road, rail or air, or who arrange for such transportation (e.g. logistics providers). we also serve the automotive industry and its suppliers, as well as companies involved in transportation infrastructure. MARSH

6 KEY VALUE DRIVERS FOR RISK MANAGEMENT Capital - Protecting the financial resources available for use in business activities, including financial assets and tangible assets such as property or equipment, can ultimately prevent loss of value to the organization. Cash Flow - Increasing the cash generated and spent by a company over set period of time is important for its continued operation and financial health. Cost Containment - The business practice of maintaining expense levels to prevent unnecessary spending or thoughtfully reducing expenses to improve profitability without long-term damage to the company. Asset and Human Capital - The skills, knowledge, and experience of an organization s workforce in terms of achieving strategic business objectives. Regulation - Rules based on and meant to carry out a specific piece of legislation and are enforced usually by a regulatory agency formed or mandated to carry out the purpose or provisions of legislation. Operational Excellence - Increasing an organization s level of performance and efficiency that maximizes services and operations can demonstrate overall value to customers and clients. MARSH

7 TRANSPORTATION OVERVIEW 17 September

8 Logistics/Transportation is at the forefront of change right from the colonial times to date. No one would survive without that the logistical support for goods and services. The logistics industry is evolving rapidly. These changes are driven primarily by customer expectations / buying habits that require a distribution model that delivers in hours not days. The desire to fulfill that need is creating an aggressive and competitive market that is currently enjoying a de-regulated transportation environment, which is fostering acquisitions driven by e-commerce, industry disruptors, nuclear liability decisions and new approaches to providing logistics services. Today the industry is dealing with the economic impact of the influx of oil. At the same time customer demands in terms of enhanced liability, service extensions and reverse logistics processes are increasing the scope of these emerging risks. Logistics and Transportation stakeholders need to create a program built to succeed not only now but into the future as your company and your industry continue to evolve. By 2021, retail e-commerce sales are projected to generate $485 billion in revenue compared to $353 billion in 2015*. Business-to-business (B2B), which has been the traditional cornerstone of transportation revenue growth, is shifting towards business-to-consumer (B2C). The distribution model for many industries is rapidly changing necessitating new strategies to meet customer demand. MARSH 17 September

9 RISKS IN TRANSPORTATION RISK ISSUES Employment Related Ageing Workforce Workers Compensation Driver Shortage and Retention Cyber Denial of service Litigation Dissatisfied customers Enhanced liability Operating a fleet represents one of the largest risk for a transportation organization. Unsafe operations drive claim frequency and severity leading to increased loss costs and insurance premiums Broker Liability Cargo / Marine Claim Handling Disaster Planning Fleet Safety Reputation Lost Goods Regulatory Changes in regulation Liquidity Economic Downturn Challenges Technology / Emerging Technologies Application Software MARSH 17 September

10 QUESTIONS MARSH 17 September

11 MARSH A PARTNER YOU NEED

12