ZURICH RISK ENGINEERING PROTECTING PEOPLE, PROPERTY AND PROFITABILITY

ZURICH RISK ENGINEERING PROTECTING PEOPLE, PROPERTY AND PROFITABILITY

MANAGING RISK TO PROTECT YOUR ASSETS TOUGH CHALLENGES DEMAND STRONG RISK MANAGEMENT LEADERSHIP Businesses face increasing levels of risk that threaten both their short-term ability to perform and long-term opportunities to survive and prosper. Business interruption and financial loss can usually be reversed at a cost but a negative impact on reliability, brand reputation, market share or goodwill may be permanent. If you are not prepared with the right processes, plans and contingencies to tackle complex risks and unpredictable events, then the fallout could be fatal. UNDERSTANDING YOUR NEEDS Our whole approach is around protecting your risks and gaining the broadest possible picture of risk requires deep industry understanding supported by decades of Risk Engineering expertise. Businesses need a risk management partner who can identify their primary risk exposures and then work with them to build resilience into robust business planning. Armed with the latest tools to assess risk, we will help you achieve your business goals, by targeting risk management initiatives where they will have the greatest impact. 2

DELIVERING RESULTS Zurich Risk Engineering understands your world. We can help you protect your assets and minimize the total cost of your risks and their potential impact on your profits. By improving your business resilience you will be better equipped to withstand unexpected incidents with a tailored risk management and mitigation strategy that is both consistent with your organization s risk appetite and based on industry-leading best practice. When it comes to building our new facilities around the world, Zurich Risk Engineering has been a valued partner for 12 years (and counting). CCL and Zurich consult during the building design process on construction and fire protection etc, so we engineer in good loss prevention right from the start. CCL INDUSTRIES INC. 3

SHARING OUR INSIGHT AND EXPERTISE The way we think and respond brings us closer to our customers so we deliver on their expectations and then go further by adding real, long-term value in our relationships. Our partnership approach provides a well-proven and successful model for effective risk management. Being a reliable partner means delivering the right types of risk management service at the right time. By understanding business, with highly qualified professionals drawn from across many industry sectors, we offer meaningful advice tailored to your risk management principles and philosophy. INSIGHT THAT GOES DEEPER The efficient flow of up-to-date information is vital to enable you to assess the risks you face and make informed decisions. We leverage the risk assessment data we collect so that accurate benchmarking comparisons are made that improve your risk profile. We also link our Risk Engineering assessment data with Zurich s underwriting ethos, ensuring your premiums accurately reflect your risk exposures. FLEXIBILITY THAT FITS YOUR BUSINESS We are pragmatic in our approach and will work with you to identify best-fit solutions and will remain agile enough to meet changing requirements and evolving risk scenarios. We will also actively support and help you manage the risk improvement advice that we give you. KNOWLEDGE SHARING AND TRANSPARENCY We continually invest in the training and development of our Risk Engineers, to ensure that their skills remain up to date and abreast of current risk management thinking. This ensures we are able to provide best advice to you at all times. A high degree of transparency is essential to build trust and confidence, so we are happy to share this knowledge with your risk managers and plant personnel using wellestablished training programs based on more than 75 years experience, such as our acclaimed International Risk Engineering Course, where customers and our Risk Engineers are in the same class room. 4

CASE STUDY: IKEA JAPAN Zurich Japan has long been an important partner for IKEA. Almost immediately after the tragic earthquake on March 11th, 2011, we contacted Hisashi, our Risk Engineer from Zurich s Tokyo office, asking for support in assessing our affected stores and assistance in resuming operations. Despite public transportation having not yet fully recovered from the earthquake, Hisashi used a combination of his personal bicycle as well as taxis to reach the sites, complete thorough assessments with accompanying reports, all within a few days. His personal and professional commitment allowed us to reopen for business quickly and reduce financial impact. IKEA ASIA-PACIFIC 5

PRACTICAL EXPERIENCE THAT DELIVERS RESULTS Zurich Risk Engineers bring a wealth of skill, knowledge and resources to match your risk management requirements. EVALUATE YOUR RISKS, REDUCE YOUR LOSSES Our risk assessments cover everything that keeps a business running smoothly, including physical protection of buildings, people, machinery and equipment. Our understanding of the risks you face enables us to identify new opportunities to reduce exposures and we communicate our ideas clearly and effectively. This, coupled with our well-proven risk grading systems, provides a consistent way to measure risk and benchmark across multiple locations and business segments, giving you the information you need to make informed decisions. BEST PRACTICE AND LOCAL COMPLIANCE We identify threats and hazards to safeguard the interests of you and your key stakeholders as well as upholding your business reputation and corporate values. Our advanced analytical methods prioritise threats by taking a comprehensive view of exposure. Our experts ensure risk management activity is compliant with local and international legal requirements and our Risk Engineering teams will spend much of their time providing face-to-face support and dialogue with you to ensure a pragmatic risk management strategy is both created and executed. Taking a holistic view of risk management enables us to develop programs that reduce risk and encourage best practice. And, of course, we always learn from the lessons when incidents do occur, to continually evolve best practice. 6

CASE STUDY: IDENTIFYING AREAS FOR IMPROVEMENT FOLLOWING TAKEOVER RISK INFORMATION ONLINE For secure online services, we provide round-the-clock access to your risk assessment information. Using the MY ZURICH online portal you can manage your risk portfolio around the world consistently and will give you up to date real time risk assessment information. This enables you to identify areas for risk improvement, benchmark against best practice, manage your risk improvement actions and grade risks according to location and industry sector. Zurich s online reporting system MY ZURICH gives you a clear, current and complete picture of your risks. It combines our thorough knowledge of your business with the latest online technology, to present in-depth information in a transparent, comprehensive and interactive way. When Lanxess AG, one of the leading specialty chemical groups in Germany, took over three rubber production units in Brazil it wanted to achieve global standards in operational practices around fire protection and process safety so it asked Zurich Risk Engineering to identify areas for improvement. As well as providing advice that helped to create an action plan, Zurich Risk Engineering also carried out operator training and risk reduction sessions. Overall safety at the sites improved significantly as a result. The opportunity for plant personnel to interact with our insurer outside a formal audit and to review the site through their eyes was very insightful and will certainly enable our staff to further continue to optimize our processes, and to make improvements. With Zurich we have a very open and cooperative atmosphere and dialogue with lively and positive discussions. LANXESS AG 7

GLOBAL PRESENCE, LOCAL COVERAGE The majority of our Risk Engineers have direct, hands-on industry experience so they fully understand your business. Many of them are also active on the global and regional technical committees that drive new standards and guidelines so they really do help shape industry thinking. Our global network means we can respond to your specific requirements by having local resources available where your risks are. And with several thousand site risk assessments carried out every year we ensure a cycle of continuous risk improvement based on our relentless commitment to help you protect your risks. PROPERTY Property (fire, security) risk assessments Natural Hazard risk assessments Highly Protected Risk (HPR) assessments Machinery Breakdown risk assessments Risk Grading and Benchmarking Business Interruption risk assessments LIABILITY General, Product and Environmental risk assessments Product Recall and Disaster Recovery Planning Risk Grading and Benchmarking Contractor Liability risk assessments Life Safety surveys MOTOR FLEET Motor Fleet risk assessments Zurich Fleet Intelligence Private Passenger Vehicle risk management Root Cause assessment analysis Driving Strategy training MARINE Marine risk analysis: Cargo Packing Container Stow and Load Supply Chain Security Marine Terminal Operations Project Cargo risk management Post Loss assessments WE ALSO OFFER A RANGE OF TRAINING COURSES AND SERVICES WHICH VARY FROM REGION TO REGION. PLEASE CONTACT YOUR LOCAL OFFICE 8

EMPLOYEE HEALTH & SAFETY Health & Safety risk assessments Occupational Health reviews Strategic and Compliance audits Specific Hazard management reviews Accident management Statutory risk assessments In addition to the property insurance coverage, the main reason why we prefer Zurich is their Risk Engineering team. Their expert team has helped us to improve our loss prevention program, hazard analysis techniques and the identification of best practices using their methodology and referencing international standards. STRATEGIC RISK FABRICA NACIONAL DE LIJAS S.A. DE C.V. Supply Chain risk assessment and mapping Business Continuity Management (BCM) and Business Continuity Planning (BCP) services Business Interruption Modeling Zurich Hazard Analysis (ZHA) Total Risk Profiling (TRP workshops) Enterprise Risk Management (ERM) Diagnostic Assessment and consulting Zurich Velocity ERM software 9

CASE STUDY: VOTORANTIM GROUP Building reputations while reducing the cost of risk Providing Risk Engineering services to Votorantim Group, one of Zurich s largest customers in the region, means adding value at every opportunity. With our comprehensive value proposition, including site assessments, benchmarking and projects consulting, Zurich Risk Engineers in Brazil do just that. In 2011 Zurich Risk Engineering in Brazil established a project review process that has become a mainstay of the proposition. Thanks to the advice Zurich Risk Engineering provides, Álvaro Trilho, the Risk Manager at Votorantim, the plant and project managers at the steel, cement, mining and metals operations throughout Latin and North America are receiving valuable loss prevention insights. Zurich Risk Engineers carry out an evaluation of the project information and produce a report that allows Álvaro to address risk exposures at the design phase, instead of spending money implementing loss prevention features after the plants are built or projects completed, which would most likely be more costly. As well as identifying which safety features should be added, our Risk Engineers also look out for unnecessary spending and, during a recent project review, they identified a potential saving of USD 108,000. Votorantim was all set to install a fire protection pump however we advised them that it wasn t necessary due to the elevation difference on the site. Álvaro is clearly delighted: This is a true example of how Zurich Risk Engineers are using their expertise to make a difference in terms of quality of risk improvement in our plants. Mario Orozco, Chief Risk Officer, Latin America said: Zurich Risk Engineers beautifully demonstrate how our technical expertise not only helps to reduce the cost of risk but can also help build our reputation with important customers. Votorantim Group has operations in 24 countries worldwide. It focuses its activities on key sectors of the economy that demand capital intensive and high scale production processes such as cement, mining and metallurgy (aluminum, nickel and zinc), steel mill, pulp, orange juice, and energy self-generation. In the financial market, the Group trades through Votorantim Finance. 10

This is a true example of how Zurich Risk Engineers are using their expertise to make a difference in terms of quality of risk improvement in our plants. CASE STUDY: FIRST SOLAR, INC. An expert risk assessment to confirm the feasibility of Desert Sunlight in California, the world s largest solar farm of its type, enabled an insurance program to be put in place that was a key requirement for essential loan guarantees to be given by the US Department of Energy. The Zurich Risk Engineering team evaluated First Solar s sustainable energy project to assess its exposure, particularly to flood risk, so that Zurich could act as the lead insurer and the green light could be given for the loan guarantees. 11

Global support Local Zurich Risk Engineering representation Europe l Austria l Belgium l Czech Republic l Denmark l Finland l France l Germany l Ireland l Italy l The Netherlands l Norway l Portugal l Russia l Slovakia l Spain l Sweden l Switzerland l United Kingdom North America l Canada l United States Middle East and Africa l Bahrain l Morocco l South Africa l Turkey l United Arab Emirates Latin America l Argentina l Brazil l Chile l Mexico l Venezuela Asia-Pacific l Australia l China l Hong Kong l Taiwan l India l Indonesia l Japan l Malaysia l New Zealand l Singapore 12

for contacts www.zurich.com/riskengineering Countries where there is not local Risk Engineering representation will be serviced from the nearest local office or hub wherever possible. 13

a wealth of skill, knowledge and resource Over 75 years of Risk Engineering experience. We have over 900 risk specialists with industry expertise operating in 40 countries. Our Risk Engineers carry out over 63,000 site assessments every year. We manage over 800 international Risk Engineering programs globally. to find out how Zurich risk Engineering can support you, contact your local Zurich representative or your broker or visit www.zurich.com/riskengineering 14

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134110A02 (01/13) ZCA Zurich Insurance Group Mythenquai 2, 8022 Zurich, Switzerland All information contained in this document has been compiled and obtained from sources believed to be reliable and credible but no representation or warranty, express or implied, is made by Zurich Insurance Group Ltd or any of its subsidiaries (the Group ) as to their accuracy or completeness. Some of the information contained herein may be time sensitive. Thus, you should consult the most recent referenced material. Information relating to risk engineering is intended as a general description of certain types of risk engineering services available to qualified customers. The Group and its employees do not assume any liability of any kind whatsoever, resulting from the use, or reliance upon any information, material or procedure contained herein. The Group and its employees do not guarantee particular outcomes and there may be conditions on your premises or within your organization which may not be apparent to us. You are in the best position to understand your business and your organization and to take steps to minimize risk, and we wish to assist you by providing the information and tools to assess your changing risk environment. In the U.S., risk engineering services are available to qualified customers through Zurich Services Corporation and in Canada through Zurich Insurance Company Ltd.