Partnering with Purpose
Building Community Financial Resilience: Strengthening National-Level Resilience in the UK Through More Dynamic Public-Private Interactions
Strengthening National-Level Resilience in the UK Through More Dynamic Public-Private Interactions
There has been no shortage of crises competing for the attention of public and private entities. Recent events have sorely tested the resilience of UK institutions, with similar challenges observed throughout the world. As many countries are looking toward the future, the compelling question is: What’s next?
Just as the (re)insurance industry, policyholders and governments throughout the world joined forces to offer relief to those who needed it most urgently, it’s now time for the public and private sectors to take a hard look at what’s needed to build long-term resilience.
Marsh McLennan’s report, Partnering with Purpose, prepared for the National Preparedness Commission, examines the opportunities for stronger interactions between public and private sectors. Founded on extensive research and interviews with resilience experts in the UK and abroad, it offers ideas for further exploration in the context of a much-needed debate.
Resilience needs to be framed not just as countering against a negative (risk), but rather as building a sustainable environment supportive of prosperity and well-being, for private organizations and governments as well. Better preparedness for external surprises makes for lower performance volatility, shallower damage from shock events, and greater government policy stability. This provides an improved environment in which to plan and invest, where public- and private-sector leaders can deploy capital more safely to deliver the strongest social and economic returns
Conscious of the risk landscape, where should government step up its commitments, based on its unique positioning? Where does it need to play a bolder role to mandate and regulate, nurture and facilitate the activities of others? And where should it back away and simply let market forces suffice? An extensive range of collaborative efforts include investment stimuli, bailouts, joint research and development agenda, and celebration that leverages the self-interest and goodwill of the market.
Questions also can be asked of the private sector, about where corporate responsibilities for resilience begin and end, acknowledging the very different capabilities of big corporations and small enterprises. While many firms would do well to anticipate extreme scenarios better and make resilience a core underpinning of their operations, the report discusses how far they should they go in analyzing their dependencies and take steps to influence supply chains, workforces and customers.
The wide scope and significance of this challenge presents a clear opportunity for the (re)insurance market to bring forth innovative solutions that address understanding, affordability and appeal. Guy Carpenter and Marsh McLennan stand ready to partner with governments, local authorities and community groups in understanding the risk and exploring solutions of how it can best be managed.
