Organizations must develop new risk management strategies to prepare for an increasingly volatile and uncertain world. To better mitigate the effects of global economic disruption, Michael Zuckerment recommends the use of captive insurance companies (i.e., Captives).
Captives are insurance companies formed within an organization with the purpose of surveilling and protecting its owners from all risks to the enterprise. Captives strengthen the risk management process by bringing Senior Management and Enterprise Risk Management teams together to identify specific risks that could undermine mission-critical relationships.
Organizations are urged to consider investing in such risk control measures to safeguard against the impacts of global crisis, such as seen with the COVID-19 pandemic.