Risk management in China is undergoing considerable development
Introducing: Danfer Gao, founder and CEO of Global Loss Control in Shanghai. Gao and his specialised risk management consultants have affiliated with the global Riskonet network. The Chinese risk consultant says: “We provide support to companies and insurance firms with risk management issues – an area that is undergoing considerable development in China”.
Global Loss Control was formed in 2017 and operates in the region of Shanghai and the surrounding area with six consultants and engineers. The consultancy firm works mainly for European and American companies in China and for local insurance firms. “Insurance firms usually call on us for advice precisely because of our experience with international companies. We also offer advantages for international companies, in particular because of our knowledge of and experience with local laws and regulations and the way in which insurance firms work. For instance, we provide asset risk management reports for insurance firms and we advise companies on safe operation and on meeting the demands and requirements of government authorities and insurance firms. We are hands on and we have a lot of theoretical knowledge and practical experience”.
A lot of work to be done
It is clear that there is also a lot of work to be done in the heavily industrialised regions of China. Danfer Gao recalls major disasters, such as the disaster six years ago in the coastal town of Tianjin (near Beijing) that led to hundreds of casualties. “There have been major accidents more recently too, particularly at chemicals companies, and have led to the authorities giving greater attention to safety than in the past. However, not only large chemicals groups, but also medium-sized companies feel the pressure from government authorities and insurance firms to work more safely”, said Gao, who has many clients in the chemicals and technology industries.
“Government authorities usually issue new rules after accidents, but many companies are not always aware of these, or they are unable to see how they can comply with these so that they can continue their business. As risk consultants, we can really provide them with effective help”.
New partner in China
It soon became apparent in our conversation with Danfer Gao why he is very welcome as Riskonet’s new partner in China – he speaks the international language of experienced risk management professionals. “We work as consultants and advisers for both international companies that are established in China and insurance firms in the Chinese market. We know the local situation and the laws and we apply this knowledge to create bridges between both parties”.
“Companies need to be aware of the risks they face and the requirements placed by government authorities, as well as what they can or should do in order to comply with these. We also like to raise organisations’ awareness of the need for measures, not only to reduce actual risks and prevent or limit damage. It is also important that there is a dialogue between companies and insurance firms about risks, potential damage and cover. There are also possibilities for insurance firms to make good contacts with organisations to reach a consensus about demands and requirements. A true dialogue about risk and damage limitation is much more profitable for both parties than the black and white positions of both sides with hard demands”.
All manner of consultancy
Global Loss Control provides all manner of consultancy (see text box). “We also offer our International Global Loss Control platform to our clients. This is an intelligent online Risk Consulting service system that enables users to independently and professionally perform a risk assessment to identify the potential risk and to evaluate and manage it. The system has been designed using international best practices in the field of risk assessment. The power of big data and artificial intelligence technology means that the platform can not only considerably reduce the costs of risk management, but can also make it more efficient”.
Danfer Gao is the Senior Risk Consultant at GLC in Shanghai, China. He is responsible for consultancy services at this young company in the field of property risk management for GLC’s clients. Danfer Gao has more than 10 years’ experience in project risk consultancy services and property loss prevention engineering in chemicals, food processing, warehousing and distribution centres, pharmaceuticals, telecoms & data centres, semi-conductor manufacturing and machinery industries, and also in other industries. This includes the following:
- Property Underwriting Survey, which enables a risk consultant to better conclude a property insurance policy.
- Property Loss Control Surveys, which help the client with identifying risks in its operations and provide cost-effective solutions.
- Project Risk Engineering Service for design review, construction follow-up and acceptance, which help the client with the construction of inherently safe installations in terms of avoiding property damage.
- Providing support to companies in devising safety management standards.
- Property loss prevention training.
- Safety assessments.
- Business Continuity Management (BCM).