‘Navigating to the Efficient Frontier’

On May 16, Willis Towers Watson (WTW), a leading global advisory and broking solutions company, provided a briefing on risk transformation for the Ayala group with the theme “Navigating to the Efficient Frontier.” The event was attended by over 40 participants comprising chief finance officers, treasurers, and senior insurance executives representing the Ayala group.

In his opening remarks, Ayala Corporation CFO Albert de Larrazabal mentioned that “the challenge [that we face as an organization] is knowing what is efficient and defining what our frontier is and finding that optimal balance between risk and return for the group.”

Charles Barder, head of WTW Risk and Analytics International, provided insights on optimizing risk retention strategies and insurance programs using the portfolio approach. A mix of various investments within a portfolio helps diversify risks and dampens volatility over time, resulting in greater capability in retaining certain levels of risks and managing total costs to the organization. Groupwide policies can also make the Ayala group’s risks more attractive for insurers in terms of premium on offer and reduced loss volatility, creating greater leverage with insurers.

In his closing message, Ayala Treasurer Estelito Biacora said that “there is value [in] continued collaboration and tapping into the collective intelligence in managing evolving risks, ideation of risk transfer strategies, and insurance that would enhance capital efficiency for the Ayala group.”

Ayala CFO Albert de Larrazabal, Ayala Treasurer Estelito Biacora, and Willis Towers Watson (WTW) Head of Risk and Analytics International Charles Barder (third to fifth from left) at the risk transformation briefing for the Ayala group with (from left) Ayala Head of Financial Risk Management and Origination Theodore Ivan Paris, WTW Head of Southeast Asia Corporate Risk and Brokering Rupert Robert, Ayala Risk and Insurance Manager Mark Anthony Beriña, Head of WTW Philippines Consulting Office and President of WTW Insurance and Reinsurance Brokers Philippines, Inc. James Matti, and Head of WTW Strategic Risk and Consulting for Asia James Wong.

CFOs, treasurers, and senior finance and insurance executives from Ayala, ALI, BPI, Globe, ACEN, AC Health, AC Logistics, ACMobility, IMI, AFI, and iPeople participate in the risk transformation workshop conducted by Willis Towers Watson.