Updating models and their uncertainties

As the implications of a UK exit from the EU become more understood from a risk and exposure perspective, each organization will need to evaluate how the new political and regulatory environment impacts their organization (e.g., supply chain risk, directors' and officers' increased exposure, trade credit and political risk, etc.).At that point, organizations will need to determine if or how their risk mitigation strategies may be structured or changed to transfer any layer of risk they would like to move from their balance sheet.Impact on Pensions: Brexit's impact was immediately felt in both capital and currency markets, causing significant volatility around the world.Pension funds were hit by increased liabilities and decreased assets.Leading companies have already begun to consider the potential outcomes of Brexit and are beginning to plan accordingly.From supply chain disruptions to fluctuation in exchange rates and changes in employment law - Brexit is likely to have a long-term impact on business and it is critical for senior business leaders to begin to prepare for Brexit's likely implications.The risk of needing to pay more in contributions should be factored in financial planning in light of Brexit.Beyond cash flow impact for companies in the financial sector, regulatory capital positions will be important and could directly affect a company’s ability to operate.

It is suitable for organizations globally with operations and business interests in the UK.

Aon's unique position in the marketplace provides our clients with global market access as well as the results of an unmatched investment in data and analytics to help drive market innovation and address our client's evolving and emerging risk needs.

Insurance program response: Some organizations have expressed concern about the impact of a possible depreciation of the British pound on policy limits.

They need to prioritize where they see the greatest impact to their business following Brexit, and ensure they are structured for resilience and future growth, with clear stakeholder responsibilities.

For all intents and purposes, we do not expect many, if any, material impacts on the risk profiles of our clients in the near term.

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