Analyzing Business Risks and Consequences: Coursework Assignment 1

This coursework assignment analyzes the business risks faced by Marsh Inc., a global leader in insurance broking and risk management. The assignment begins with a brief overview of Marsh, including its operations, subsidiaries, and key personnel. It then explores the external organizations and forces that influence Marsh, focusing on economic, socio-cultural, and technological factors. The core of the assignment delves into specific business risks, including defamation related to advertising, cyber risks in the digital age, and underwriting risks in the insurance sector. The analysis examines the consequences of each risk for Marsh, providing insights into how these risks can impact the company's operations, reputation, and financial performance. The assignment highlights the importance of understanding these risks and developing strategies to mitigate their negative effects. The solution is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

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Marsh: Brief Overview
Marsh Inc. is the global leader organization that is focused on insurance broking and
innovative risk management activities. The company has 35000 employees, who is
dedicated to perform together in order to satisfy their clients. Company is focused in
functioning in order to give advices to their individual and all different kind of commercial
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clients. Presence of the company is wide spread to around 130 countries and concludes 500
offices all over the world. Marsh is a subsidiary of Marsh & McLennan Companies (MMC),
which widely known throughout world for their performances in positive note. The company
is completely owned by the themself.
The organization is dedicated to help their clients, which is the main objective of them
by removing the phrase “What- ifs” by their thinking by managing the risks associated by
them effectively, it is also focused on providing them better quality than others and
transforming the types of uncertainties that are incorporated into several sort of
opportunities. The current CEO of the organization is Peter Zaffino, however on the other
hand the current CFO of the organization is Keith Walsh. The subsidiary organization of
Marsh is Bluefin Group Limited1. The subsidiary organization generates higher amount of
revenue for the organization who are indulged with the same sort of business and they are
earning higher amount of revenue that is causing the parent company to get related with
higher amount of return.
External Organizations and their affiliation with Marsh
Three types of external organization which are significantly involved in affiliation to Marsh:
i) Economic forces
ii) Socio-cultural forces
iii) Technological forces
Economic forces
Economic forces specify the market demand and the balance between demands and
supply in the market. This generally helps to analyze the power of segmentation between the
people who are associated with the product plan and who are not really much into it. This
gently describes the effect of bargaining power of the consumers in the market and also the
suppliers in the market in relation to availability within the market. The purchasing power in
the market is very much important in relation to understand that how much the customers
can be able to spend in the market. This is generally the actual reason by which it gently
helps the organization to know the spending patterns. It is very crucial for the managers of
the company to understand that they shall not try to explore their plans by implement in the
business by creating an impact to the people. They should not plan to deal with importing
and exporting business without being knowing about nominal GDP, real GDP, import duty
1 Marsh & McLennan, ‘About Marsh’ (Marsh & McLennan, 2019)
http://www.mmc.com/about-us/overview/about-marsh.html accesses 20th April 2019
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and tariffs of the country. Marsh are very well balance in this source of viability in analyzing
the GDP, import duties, tariffs and understanding the spending pattern, bargaining power of
the consumers.
Socio-cultural forces
These are the forces which generally force to link to those factors that are really
focused on the basics of values, culture, preference, behavior, education. Values of the
organization is believed with the ethics and conceptions enriched from the ancestors of the
family of the particular customers. Culture is related to the system that is evoked from
conceptions and habitants related to the focus of the family protocol that is followed day after
day. This system is followed by the business houses that are gently associated with evolving
newer technologies. There are many instances where business firms fail miserably to
analyses requirements of the customers and their tradition in the selected country. Marsh is
however much prepared in advance to accommodate the variations to maintain the socio-
cultural forces and they are quite succeeding in it.
Technological forces
It is the type of force that is enhanced in acknowledging modern technologies to
implement the resources in order to get help in managing the resources efficiently.
Converting the raw materials and perfectly managing the crucial influencing innovation of the
market opportunities. It generally helps in development of wireless technologies that is
specifically involved by Marsh in order to control their inventory system very effectively.
Earlier they used to face this problem and recently this is the best technology that they are
dealing with higher efficiency.
Selected Organizations and Business Risks
It is the type of risk that is associated with the employees and the organization who
are indulged in the process of structuring the business concept. It is the risk, which is as the
name suggests is the type of risk, which may or might not be faced by the organization
during its working span. It is considered as the exposure to the organization that coincides
some type of factors, which might be present internally or externally and it might lead to loss
or solvency of the particular organization. In the above paragraphs, the relation of Marsh
with some other external organization forces is explained effectively. In this section,
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considering the references added to the selected external organizations that are believed as
their one major business risk.
Business Risk and application in economic forces
Economic forces are considered as already explained as the financial conditions that
are recognised as the measurement by which people are quite feasible to pay and who are
not enough feasible to deal with it. This section deals with a range of customers2. As it is
referred as the advertising and market communication based agency, it might encounter the
most probable risk which is referred as Defamation. It happens because; this section is
associated with proper utilisation of resources to attract range of customers. Defamation is
recognised as one of the major threat in media marketing industry.
Defamation with contenting to media or advertising industry defines by creativity
advertisements, which makes false or disregarding statements by focusing other different
company, different sort of idea and other kind of production analysis.is also focused in
transformation of advertising industry. These issues are considered as the most
unconditional problems that is associated with larger section of ideology in relation to
conditioning solving of the problems. The foundation of the fault is resembled as the most
functioning context, so that it can hamper the image of advertising industry severely and the
image of innocent one to some extent3.
Business Risk and application in technological forces
Technological forces play a big role in considering of business risk that concludes
biggest fault in analysing or any other information technology company can face is the Cyber
Risk4.
It is the risk which consists of factors that enable to cause harm of business that
concludes digital platform. These are the risk factors that consist of different sort of activities,
this is related to the security that prefer hacking of the accounts which can be related with
many type of details in the associated things which are available online. Software analysis
and implementing analysis are considered of organizations are the main events that mostly
depends upon digital platform. Focusing in order to maintain competitive platform in nature, it
is required to evolve according to the market needs5.
2 Doremus, ‘Work’ (Doremus, 2019c) https://www.doremus.com/work/ accessed 20th April 2019
3 David, Rolph, ‘Defamation by Social Media’ [2013] 117 SLS Research Paper No. 13/81 16
4Nikhilesh, De, ‘ IBM Expands Blockchain Partnership With Insurance Broker Marsh’ ( Coindesk,
2018) https://www.coindesk.com/ibm-blockchain-expands-partnership-with-insurance-broker-marsh
accessed 20th April 2019
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Business Risk and application in socio-cultural forces
Underwriting insurance risk is defined as the type of risk which is most commonly
faced by insurance firms. While writing an insurance policy, inaccurate assessment in
resembling the associative structure of the risk involved in it and by from some
uncontrollable factors. The cost associated of the insurer might increase and it might exceed
the standard limit. It is considered as underwriting6 resources. Different companies focusing
in order to regulate the causes of implementation case underwriting the resources of
insurance understanding generally practice of it.
Analysis of Consequences of each business risk for Marsh Company
Defamation in association to Marsh Company
In above scenarios it is generally discussed that Marsh Inc. is regarded as one of
large insurance broking organizations throughout the world. They are intended to manage
risk by analysing client’s profile and by maintaining the objective in accordance to diluting the
solutions. However, defamation is emerging as harming image and reputation of the other
party by communicating the false statements about them. It can be performed in two types,
which are discussed and other is focused in written form. Spoken defamation is referred as
slander and it is printed is known as libel7.
Insurance broking firm like Marsh Inc. has higher degree of possibility in performing
existing defamation. It is mentioned above; defamation indulges in preparing false statement
on other’s people’s case throughout advertising field. This section is already assigned as the
part of the business contractual system. Similarly, Marsh Company also focuses on the need
to advertise about their product what they manufacture and the companies that are present
around them in their industry type in need to advertise to promote their products. This is the
particular way, Marsh, other insurance broking companies might get affect, or getting
affected by different association through defamation8. Consequences of defamation in Marsh
Company are focused to be of various types. Some of them are listed below:
5Eling, Martin and Schnell, Werner, ‘What do we know about cyber risk and cyber risk insurance?’
[2016] 17 TJRF 474
6 Lazar, Dorina, and Denuit, Michel, ‘New evidence for underwriting cycles in US property‐liability
insurance’ [2011] 13 TJRF 4
7 Kate, Maddox, ‘Marsh & McLennan Rolls out Rebranding Campaign’ (AdAge, 2011)
https://adage.com/article/btob/marsh-mclennan-rolls-rebranding-campaign/284231 accessed 20th
April 2019
8 Marsh, ‘Governance’ (Marsh, 2019a) https://www.marsh.com/uk/about-marsh/governance.html
accessed 20 April 2019
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 Insurance broking organizations, which are competitors of Marsh, might use false
statements against Marsh in order to increase the sale of their own product. It is used
by them in order to practice the things by doing it for reducing the sale of Marsh’s
products by getting effected of the business by other companies.
 The other consequence can be that is Marsh trying out to falsely promote products
by claiming things in accordance of the substances that are not executed about it
which are not considered actually real. However, the way image and goodwill
associated to Marsh can get hamper drastically.
Cyber Risk in association to Marsh Company
Marsh is an insurance broking organization which manages the risk analysis of the
business portfolios of its clients. Marsh is referred as a very big organization, which has its
branches spread all over the world. It also consists of very large network encrypted digitally.
On the other hand, Cyber risk as already told is the risk which is usually caused by factors
involving in business network digitally and might hamper the image of company, that might
lead to loss.
In Marsh Company, they prefer to deliver many broking services to a range of industries.
Their business association is largely spread throughout the world and deals with thousands
of customers globally. Huge network like this is not that easy to manage and in relation to
track the trading dialogue, Marsh shifted to digital platform from some years. In today’s
platform, many of the operational functions of Marsh programmes through online platform.
This is always enhanced that technology brings chaos to the reductive functional
environment9. Digitalization comes up with cyber risks and leads to turn into cybercrimes.
Consequences of cyber risk for Marsh can be:
 Reputation of Marsh in market is always high but because of cyber risk, image of the
company is hampered drastically.
 For Marsh one type of cyber risk can be exposure of confidential dates of their client,
due to some hacking in the software. Sometimes a virus in the software and then in
computer can crash the major documents, which may lead to damage of client’s
data. These all can cause serious legal actions against company and in turn can
hamper the goodwill of the company.
9 Beazley, ‘Beazley and Marsh Launch cyber insurance cover and breach response designs for
manufacturers’ (Beazley, 2019)
https://www.beazley.com/news/2019/beazley_and_marsh_launch_cyber_insurance_cover_and_breac
h_response_designed_for_manufacturers.html accessed 20th April 2019
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Underwriting concept in association to Marsh Company
Growing businesses need a well management draft and strategy to manage their
various risks. Marsh as already mentioned is an broking organization that has works for all
sizes and types of organizations weather they are small or big, or of any industry type. On
the other hand Underwriting is the risk of not accessing correct amount of insurance by
insurer before doing insurance. Because of this at the time of maturity, they need to give
more amount then total premium collected. They underwrite it.
In the case of Marsh Company, underwriting risk may arise due to various factors. If the
experts of the company underwrite the calculations of insurance as a broker, then the
company need to born this damage and may get in loss. If this continues then it can shake
the core of Marsh severely. The consequences of underwriting risk for marsh can be:
 Underwriting of broking amount termed to loss for the company. Broking amount is
enhanced to generate percentage undertaken by Marsh from both insurance parties.
 During some instances, insurance companies underwrite the premium amount.
Broking rate of Marsh Company might get affected due to this. Organization must not
allow to consider repeating this task or else it might effect to hamper the goodwill of
them.
Conclusion
Some recommendations for consequences of these three risks has suggested here
for efficient and effective working of Marsh.
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Recommendations
Defamation Risks in association to Marsh
Defamation risk is harming the image of the person, product or a company by claiming
false statements about them publicly10. Consequences for Marsh, of these types of risks
have already discussed in above paragraphs. In this section, the recommendation about this
risk with reference to Marsh Company has tried to be given in following sentences:
 There are some defamation laws, which allow speakers, or writer to give their point of
view independently on the other hand also tries to protect the privacy and reputation
of the individuals. Hence, it has recommended to Marsh Company to follow every
rule of defamation.
 Unintentional defamation can be reduced by double and over checking of the content
that is going to be advertised by the Marsh Company.
Cyber Risks in association to Marsh
During recent times, most of the tasks are associated with online participation and
business are run through online protocol. Due to this, mostly some of the organizations are
trying to get involved in digital platforms either as business provider or as a customer. It
generally gives rise to increment of risks that are related to digital world. Cyber risk can
affect and hack the data of Marsh Company effectively. However, in due diligence order to
perpetuate through generating protection of them, company is required to perform certain
needs to intake certain measurements to evaluate successfully11. Measurements
incorporated by taking by comprising the reference to discuss in the particular report in
following sentences:
 In focusing to protect the cyber risks, organizations incorporate different modern
technologies to protect attacks from the hackers. Tit is being initiated by enabling the
usage of superior antivirus device and referring help from an IT expert or company.
 Marsh should take consultation from baking experts, IT experts and Business
Experts, regarding every measure necessary while doing business online. This will
help them to know and understand the digital form of working effectively.
10 Marsh, ‘Who We Are’ (Marsh, 2019d) https://www.marsh.com/uk/about-marsh/who-we-are.html
accessed 20th April 2019
11 Marsh, ‘Our Values’ (Marsh, 2019b) https://www.marsh.com/uk/about-marsh/our-values.html
accesses 20th April 2019
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Underwriting Risks in association to Marsh
Underwriting risk is the value that takes place when the insurer does not access the
conditions effectively and due to which the probability of losing increases drastically. In
focusing of the underwriting scenario, the insurer has to hold that part of insured in their
custody for a very long time or sell is at a loss. In case of Marsh, it is an insurance broking
organization and has a set pattern in which they first define the risk then design solutions for
them and after that deliver productive results12. Here are some recommendations which may
help Marsh company to avoid underwriting risks.
 In order to reduce this type of risk Marsh Company should appoint experts to check
and evaluate the percentage of amount involved in the agreement between the
company and its client.
 If company somehow experiences the underwriting risk then it they shall try to
overcome the contemporary loss as quickly as possible. It is accumulated in loss
throughout the structure of the contemporary business.
Reference list
Secondary Sources
Articles
12 Marsh, ‘You are Changing We are Too’ (Marsh, 2019c) https://www.marsh.com/uk/home.html
accessed 20 April 2019.
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Dorina, Lazar and Michel, Denuit, ‘New evidence for underwriting cycles in US property ‐
liability insurance’ [2011] 13 TJRF 4
Martin, Eling and Werner, Schnell, ‘What do we know about cyber risk and cyber risk
insurance?’ [2016] 17 TJRF 474
Rolph, David, ‘Defamation by Social Media’ [2013] 117 SLS Research Paper No. 13/81 16
Websites
Beazley, ‘Beazley and Marsh Launch cyber insurance cover and breach response designes for
manufacturers’ (Beazley, 2019)
https://www.beazley.com/news/2019/beazley_and_marsh_launch_cyber_insurance_cover_and
_breach_response_designed_for_manufacturers.html accessed 20th April 2019
Beazley, ‘Home Page of UK’ (Beazley, 2019a) https://www.beazley.com/uk accessed 20th April
2019
Beazley, ‘Who we are’ (Beazley, 2019b)
https://www.beazley.com/united_kingdom/who_we_are.html accessed 20th April 2019
De Nikhilesh, ‘ IBM Expands Blockchain Partnership With Insurance Broker Marsh’ ( Coindesk,
2018) https://www.coindesk.com/ibm-blockchain-expands-partnership-with-insurance-broker-
marsh accessed 20th April 2019
Doremus, ‘Ideas that connect’ (Doremus, 2019a) https://www.doremus.com/ accessed 20th
April 2019
Doremus, ‘Services’ (Doremus, 2019b) https://www.doremus.com/services/ accessed 20th April
2019
Doremus, ‘Work’ (Doremus, 2019c) https://www.doremus.com/work/ accessed 20th April 2019
IBM, ‘ Discover a faster, more secure journey to cloud’ (IBM, 2019a) https://www.ibm.com/in-en
accessed 20th April 2019
IBM, ‘ Review your Industry with IBM Blockchain’ (IBM, 2019c)
https://www.ibm.com/in-en/blockchain/industries?lnk=mpr_bua_inen&lnk2=learn accessed 20th
April 2019
IBM, ‘IBM Blockchain’ (IBM, 2019b) https://www.ibm.com/in-en/blockchain?
lnk=mpr_bua_inen&lnk2=learn accessed 20th April 2019
Maddox, Kate, ‘Marsh & McLennan Rolls out Rebranding Campaign’ (AdAge, 2011)
https://adage.com/article/btob/marsh-mclennan-rolls-rebranding-campaign/284231 accessed
20th April 2019
Marsh & McLennan, ‘About Marsh’ (Marsh & McLennan, 2019) http://www.mmc.com/about-
us/overview/about-marsh.html accesses 20th April 2019
Marsh, ‘Governance’ (Marsh, 2019a) https://www.marsh.com/uk/about-marsh/governance.html
accessed 20 April 2019
Marsh, ‘Our Values’ (Marsh, 2019b) https://www.marsh.com/uk/about-marsh/our-values.html
accesses 20th April 2019
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Marsh, ‘Who We Are’ (Marsh, 2019d) https://www.marsh.com/uk/about-marsh/who-we-are.html
accessed 20th April 2019.
Marsh, ‘You are Changing We are Too’ (Marsh, 2019c) https://www.marsh.com/uk/home.html
accessed 20 April 2019.
Novet, Jordan, ‘IBM earnings and 2019 guidance beat estimates- stock jumps’ (CNBC, 2019)
https://www.cnbc.com/2019/01/22/ibm-earnings-q4-2018.html
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Glossary of key words
Analyse
Find the relevant facts and examine these in depth. Examine the relationship between
various facts and make conclusions or recommendations.
Construct
To build or make something; construct a table.
Describe
Give an account in words (someone or something) including all relevant characteristics,
qualities or events.
Devise
To plan or create a method, procedure or system.
Discuss
To consider something in detail; examining the different ideas and opinions about
something, for example to weigh up alternative views.
Explain
To make something clear and easy to understand with reasoning and/or justification.
Identify
Recognise and name.
Justify
Support an argument or conclusion. Prove or show grounds for a decision.
Outline
Give a general description briefly showing the essential features.
Recommend with reasons
Provide reasons in favour.
State
Express main points in brief, clear form.
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