Royal Cosun takes back control

Food & Beverages (agrifood)

over 4,600 FTEs

When its hand was forced by a fire, Royal Cosun decided to take action. As a result, a new approach not only restored insurability it also reduced the brokerage fee by a third. This case demonstrates how systematic risk management can generate tangible financial benefits.

Proactively dealing with risks

Background

Damage caused by a fire at its Aviko plant in Steenderen cost the company €6.5 million and, in no uncertain terms, underscored the importance of timely risk management. Royal Cosun wanted to move away from a passive stance of waiting to see what insurers demanded, to one in which it proactively manages risks, measures, and investments, all based on a good understanding of its own situation. That fire made it abundantly clear to Royal Cosun that it could no longer rely on an ad-hoc approach. Instead, the organisation needed a structured, integrated approach to put it back in control.

From baseline to structure

Approach

Baseline measurement via the Gap Assessment Asset Safety model (GAAS)

For each of the organisation’s locations, Riskonet carried out a Gap Assessment Asset Safety analysis. These revealed where the organisation was complying with requirements, where it fell short, and where additional measures were needed. The focus was on employee and third-party safety, compliance with legislation and regulations, business continuity, and risk insurability.

Guidance notes as the departure point

These are compact documents that define ideal safety situations, the risks, and the necessary measures. Practical issues that were addressed included the compliance requirements for the compartmentalisation of a production area, and how these requirements can be met in practice.

Such an approach generated insightful discussions and raised awareness and the resulting measures were supported by employees and management alike.

Structural rollout

After the fire at Aviko (which at the time was the weakest link), GAAS reporting was made mandatory for all locations of Royal Cosun and the management wholeheartedly embraced the approach.

"Regulations change, situations in companies change, and so too does the applicable risk complexion: effective policy calls for effective maintenance. And in this respect we really benefited from the coaching given by Riskonet. They managed to combine their professional expertise with playing devil’s advocate, who also came up with some good ideas. "

Jeroen Helders

Group Treasurer & Insurance Risk Manager Cosun

Stable coverage

The location in question became insurable again, the premium stayed manageable, and the brokerage fee dropped by a third. Royal Cosun now has a firm grip on its insurance position.

A safer working environment

By taking concrete measures (including temporarily shutting down the production line), the safety situation has been structurally improved and the risk of a recurrence significantly reduced.

Continuity guaranteed

Royal Cosun can now rely on structured policies, rather than ad-hoc responses. The organisation is better equipped to withstand future risks and can adopt a stronger position when negotiating with insurers.

How would this approach work for you?

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Janet Short

Coal Point, Australia

+61 04 93 86 81 11

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Janet Short

Royal Cosun takes back control

Proactively dealing with risks

From baseline to structure