| Risk management has been defined as the | | | | |
| process of identifying and analyzing loss | | | | - Work in conjunction with ministers, |
| exposures, evaluating the feasibility of risk | | | | permanent secretaries and professional heads |
| management techniques to address the loss | | | | of departments in establishing an appropriate |
| exposures, selecting and implementing the | | | | and effective risk management system within |
| best techniques and monitoring results, in | | | | their ministries to enable them identify |
| such a manner that any organization or | | | | risks, analyze risks and mitigate risk |
| governmental entity can meet its | | | | exposures, through loss control measures. |
| objectives---minimization of the adverse | | | | |
| effects of accidental losses. | | | | - Provide insurance review of all |
| | | | governmental contracts and agreements for |
| Â | | | | compliance with appropriate terms and |
| | | | conditions. |
| It is indeed a truism that the insurance | | | | |
| industry can play a very significant and | | | | - Provide loss control oversight in all |
| critical role in a nation's developmental | | | | ministries, departments and governmental |
| process. In most developed and developing | | | | agencies. |
| countries, insurance and risk management | | | | |
| measures and practices have and continue to | | | | - Protect government owned assets and |
| provide the bedrock for a sustained modern | | | | minimize loss to the government and people. |
| socio-economic infrastructure in which | | | | |
| development and economic growth have | | | | It is also aimed at initiating and adding a |
| flourished. | | | | new perspective to the wider debate of how a |
| | | | national insurance and risk management |
| In the United States of America for example, | | | | strategy could be utilized in addressing both |
| risk management and insurance not only | | | | macro and micro risks and loss exposures |
| permeates every facet of economic and social | | | | inherent in all facets and sectors of the |
| endeavor, ranging from healthcare to | | | | nation's socio-economic and governance |
| governmental contracting, but is the | | | | infrastructure. |
| essential engine driving innovation, | | | | |
| development, commerce, investments, | | | | For an administration composed of insurance |
| governance and societal change. | | | | professionals in very key strategic positions |
| | | | including the President, Minister of Foreign |
| In the Sierra Leonean situation by contrast, | | | | Affairs, Minister of Employment and Social |
| the challenge still remains how insurance | | | | Security and Minister of Trade and Industry, |
| professionals and governmental policymakers | | | | the need for establishment of such a |
| can creatively utilize enterprise risk | | | | "National Insurance and Risk Management |
| management principles and insurance | | | | Strategy" must be a no brainier and should as |
| techniques in both the public and private | | | | a matter of urgency be seriously considered |
| sectors to effectuate the country's economic | | | | in other to effectuate the President's avowed |
| development and growth. | | | | goal of "running the country like a |
| | | | business". |
| Through the utilization of enterprise risk | | | | |
| management principles, governmental entities | | | | The basic law governing the conduct of |
| and organizations are provided a systematic | | | | Insurance in Sierra Leone is the Insurance |
| rigorous approach to managing risk from all | | | | Act, 2000 which established the Sierra Leone |
| sources that threaten their strategic, | | | | Insurance Commission (SLICOM). Pursuant to |
| developmental, socio-economic and financial | | | | section 3(1) of the Act, the commission is |
| objectives. | | | | charged with ensuring "effective |
| | | | administration, supervision, regulation and |
| Â As a Sierra Leonean insurance | | | | monitoring of the business of insurance in |
| professional who over the decades with every | | | | Sierra Leone" through the performance and |
| major loss either accidental or by design in | | | | exercise of various statutory functions. |
| the country always retorted that insurance | | | | |
| would indemnify the losses, whether it was | | | | While the Sierra Leone Insurance Commission |
| the burning by the rebels of machinery for | | | | (SLICOM) and especially the Commissioner has |
| construction of the Bo/Freetown highway or | | | | performed a superb job over the years in its |
| the destruction of the Sierra Rutile | | | | regulatory and supervisory functions, the |
| Company's mining infrastructure, culminating | | | | broader insurance industry has however lagged |
| in the recent NACSA and SABABU construction | | | | in matching the potentials of its |
| contracts; the realization that our country | | | | contributions towards national development. |
| lacks a national risk management and | | | | |
| insurance office designed to ensure that the | | | | The Act however does not provide for the kind |
| country recoups indemnification or is held | | | | of risk management and insurance oversight |
| "harmless" in such events is indeed a cause | | | | envisaged by the establishment of the risk |
| for alarm. | | | | management and insurance office. |
| | | | |
| It is thus against this backdrop that we are | | | | As a result of its inability to innovate and |
| articulating and advocating the development | | | | increase its capacity and market reach beyond |
| and establishment in Sierra Leone of a | | | | traditional instruments targeting only the |
| national insurance and risk management | | | | formal sector, whose customers are |
| strategy office designed to: | | | | corporations and wealthy individuals, with |
| | | | obligatory products such as motor insurance, |
| - Serve as a repository of all governmental | | | | the Sierra Leone insurance industry continues |
| contracts and agreements. | | | | failing the nation. |
| | | | |
| - Provide technical risk management and | | | | In conclusion, government contracting |
| insurance review of all past, present and | | | | personnel make daily business decisions about |
| future governmental contracts and agreements | | | | contract risks, insurance, limits, coverage |
| so that government can recoup damages from | | | | and evaluation of insurance. Providing them |
| past and current insurance contracts. | | | | with the appropriate tools and resources to |
| | | | assist in making these business decisions is |
| - Design and introduce innovative new micro | | | | very important for any nation's developmental |
| insurance products and services. | | | | aspirations. |