Risk Management is a Matter of Sustainability and Responsibility

In a conversation with Ana Kovačević, Director of Special Insurance and Reinsurance at Marsh McLennan Croatia, a global leader in risk management and insurance brokerage, a clear message emerges: today, failing to insure your business means consciously sailing on an increasingly turbulent sea without basic safety equipment.

– When we talk about risks, we are no longer discussing ‘what if’ but ‘when’ – emphasized Kovačević.

New Threats

Risks have, she adds, become an inseparable part of everyday business. From increasingly severe climate disasters to sophisticated cyberattacks, companies, regardless of size and industry, must adapt. Croatia, traditionally reliant on classic insurances, such as auto insurance or property insurance, is only now intensifying its confrontation with the need for a more modern approach.

– At Marsh, we do not sell policies, but manage risk. This means we analyze where the weak points are, plan scenarios, and, most importantly, work together with clients to ensure these scenarios never become a reality – Kovačević explained.

Cyberattacks, for example, are no longer something that happens ‘to someone else’. One in four companies in Europe has already been a victim of some form of cyber incident, and the number of attacks has doubled globally since the pandemic. According to Hanfin’s report, the domestic non-banking sector shows a lower level of commitment to cyber protection than global standards.

– New digital threats are pressing all sectors, from healthcare to small family businesses. If you do not have an IT department and rely on computer systems, you are a perfect target. And it is often small and medium-sized enterprises that are the most vulnerable – notes Kovačević.

Recent cases, such as the attack on KBC Zagreb in early 2024, have further alarmed the public and business leaders.

– These are real events that have paralyzed the operations of institutions. Imagine that a hospital, on which the life of a family member depends, cannot access test results for days. It is not about panic, but responsibility – she warns.

Luck is Not a Strategy

Cyber insurance, she emphasizes, is increasingly becoming a crucial tool in the arsenal of modern managers. However, as she says, there is no universal solution.

– Our approach is personalized. Every company has different processes, data, and value chains. Our task is to analyze and discover where the critical points are – and then tailor a solution that is not ‘just another policy’ but a concrete strategy for survival – and progress – explains Kovačević.

In addition to financial protection, this type of insurance includes coverage for legal costs, damages to third parties, and reputational recovery, all of which can be crucial for survival in a market where trust means everything.

– It is true that many rely on luck. But luck is not a strategy. And when an attack occurs, there is no going back. That is the difference; the prepared survive and thrive, while others sail through the storm without a boat – she emphasizes.

Risk management no longer belongs exclusively to the world of corporate directives and legal obligations. In today’s complex business environment, it is a matter of sustainability and responsibility for anyone leading a team, company, or institution.

– We brokers build resilience. At the end of the day, it is about how many goals you want to lose due to surprises you could have predicted. That is the difference between a case and a strategy – concludes Ana Kovačević.

In a world where the new normal implies uncertainty, a partner like Marsh McLennan makes the difference between chance and planned success. Because only those who recognize risk and respond to it have a chance to succeed and dominate the market in the long term.

Content created in collaboration with Marsh McLennan Croatia.