1st Jun 2007 16:13
Marsh & McLennan Co Inc01 June 2007 News Release Media Contact:Christine Walton Gabriela JuncadellaMMC Edelman for MMC212 345 0675 212 704 [email protected] [email protected] MMC ADVISES COMPANIES ON HOW TO MANAGE RISK FOR 2007 HURRICANE SEASON NEW YORK, June 1, 2007 - With the 2007 hurricane season now officially underway,Marsh & McLennan Companies, Inc. (MMC) today convened a panel of experts fromacross the firm to discuss ways companies can more effectively prepare andmanage for the potentially catastrophic effects of this season's storms. Anaudio webcast of the event will be available at approximately 10 a.m. EDT atwww.mmc.com. This year's hurricane season, which runs from June 1 to November 30, is forecastto be above-average with as many as 17 named storms compared with a more typicalnumber of about 11 per season, according to the National Oceanic and AtmosphericAdministration (NOAA). "Hurricane Katrina showed in devastating detail how a powerful storm can wreakhavoc far beyond where it makes landfall," said Michael G. Cherkasky, presidentand chief executive officer of MMC. "Organizations that were hundreds and eventhousands of miles from the Gulf Coast suffered financial and other losses asthe storm disrupted supply chains across industries and regions, illustratingwhy companies must consider the full spectrum of risks they face when confrontedwith a catastrophic event." Among the critical business issues discussed by the MMC panel were businesscontinuity planning, compensation challenges posed by displaced or reassignedworkers, protecting and recovering digital data, managing the insurance claimsprocess, understanding the impact of new Florida legislation, and forms ofcapital for property reinsurance such as catastrophe bonds. A major reason hurricanes continue to be so devastating is because of thepopulation growth in and near U.S. coastal areas over the past decade, notedRobert W. O'Brien, managing director of Marsh's National Property Claimspractice and leader of Marsh's Catastrophe Response team for North America.Marsh, Inc. is MMC's risk and insurance services firm. "More people mean more business, and that translates into more exposure whendisaster strikes," Mr. O'Brien said. "Companies should seek to fully understandall the issues that can prevent them from restoring normal operations -everything from knowing what an insurance policy does and doesn't cover to whatdocumentation they need to ensure interim insurance payments after a storm hashit." The MMC panel strongly advised companies to take pre-emptive action to ensuretheir ability to work through storm-related incidents and preserve operations tothe greatest extent possible, including: • Developing business continuity and crisis management plans; testing emergency response plans• Assessing the resilience of the supply chain• Establishing internal and external communications procedures• Instituting data back-up and recovery protocols• Assessing and understanding levels of insurance coverage• Creating claims accounting and filing systems for use in post-loss scenarios• Becoming familiar with local government emergency response plans In addition to Mr. O'Brien, the other panelists were: Ken Giambagno, globalleader of Marsh Risk Consulting's Forensic Accounting and Claims ServicesPractice, a specialist in forensic accounting; Howard Levine, principal atMercer Human Resource Consulting and an expert in employee compensationprograms; Mike Burmeister, director of engineering for Kroll Ontrack's datarecovery operations; and David Priebe, global head of Guy Carpenter's SpecialtyGroups, which includes the firm's 16 Specialty Practices and the Instrat(R)modeling and actuarial unit. MMC is uniquely positioned to provide a range of management, operational andfinancial advice on natural disaster risks through its various operatingcompanies, which are active in providing risk solutions across a range ofprofessional disciplines. Marsh & McLennan Companies, Inc. (MMC) is the world's premier provider of adviceand solutions in risk, strategy and human capital. It is the parent company ofMarsh, the world's leading risk and insurance services firm; Guy Carpenter, theworld's leading risk and reinsurance specialist; Kroll, the world's leading riskconsulting company; Mercer Human Resource Consulting, the world's leadingconsultancy in its field; Oliver Wyman, a leading global management consultancy;and Putnam Investments, one of the largest investment management companies inthe United States. More than 55,000 employees provide analysis, advice, andtransactional capabilities to clients in over 100 countries. Its stock (tickersymbol: MMC) is listed on the New York, Chicago, and London stock exchanges.MMC's website address is www.mmc.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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