Guest blog – Tuomo Kemppainen, Marsh Oy
Companies should always know, identify and insure the risks related to their business. However, risk management is not usually a priority in business and may therefore be left at the bottom of the to-do list. According to Tuomo Kemppainen*, the CEO of Marsh Oy, managing and insuring risks is much simpler than many entrepreneurs believe.
“Growth-seeking companies always have to take risks in order to succeed, however, they should try to manage the risks that can be managed. Insurance companies can help companies with identifying and managing these risks, so that the company can continue to focus on developing and growing the business,” says Kemppainen.
Taking advantage of the expertise of a reliable service provider in risk management and insurance matters is often the most sensible option for a growth-seeking company, regardless of the size of the company. One of such service providers is Marsh, an insurance company that provides consultation on risk management and insurance in over 120 countries. The company has a diverse customer base which includes large, medium-sized and small enterprises, both private and public. In recent years, Marsh has started targeting its services to growth-seeking companies and start-ups. Marsh Oy’s Finnish branch has been strongly involved in this development, and in 2017, Marsh was selected as a partner for Kasvun Roihu’s Grow to Market program. According to Marsh Oy’s CEO Tuomo Kemppainen, he, and the entire organisation, agrees that the future lies in growth-seeking companies and start-ups.
“We want to be part of the companies’ growth journey from the very beginning, which is why we have started developing new types of cooperation with growth-seeking companies and start-ups. At the beginning of cooperation, we invest in the company’s success by offering our advice. We want to support these companies in their path towards growth, and at the same time, we learn more about the risks and challenges growth-seeking companies face in their operations,” says Kemppainen.
Marsh is also a growth company, which, for a large global company, has an exceptionally open corporate culture, which enables cooperation with growth-seeking companies and start-ups. According to Kemppainen, Marsh’s corporate culture is people-centric and innovative, and the head office collaborates actively with its different branches. The close collaboration allows an efficient transfer of information and knowledge between organisations, which contributes to high-quality customer service and an innovative atmosphere.
“Our corporate culture inspires us to develop new innovations, even in a small country like Finland. We acknowledge that our entire company benefits when one branch comes up with a good idea that can be used in other branches as well,” says Kemppainen.
One example of such innovations is Marsh Oy’s insurance solution intended for growth-seeking technology companies and start-ups. The solution was introduced to the Finnish market last spring. The solution help companies to eliminate the risks that threaten the continuity of the company’s business. This is the first group insurance solution for technology companies in Europe that covers product liability risks, cyber risks and economic damage risks.
Marsh Oy will be a partner in Kasvun Roihu’s Grow to USA program organised in the fall of 2018. The program will assist 15 Finnish growth companies to expand their business to the US market. According to Kemppainen, regardless of the target country, the most common risks of internationalising companies are related to the political atmosphere, supply chains, data security and delivery reliability in the target country. In addition to these common risks, Kemppainen wants to remind small and medium-sized companies of the importance of liability insurance which, if properly managed, can improve the company’s credibility in the eyes of new customers. Even though many of the risks are the same in all countries, there are some differences between markets. Some markets are simply more challenging than others in terms of business and risks. For example, the vast US market is attractive to many companies, but at the same time, it is more challenging from the point of view of risk management.
“Companies aiming for the US market should make a realistic assessment of the market potential of their product or service and analyse the competitive climate in the target country. In order for a company to succeed in a highly competitive market, the company will have to find the right place, time and way to enter the market. And when it comes to risks and insurance, companies should bear in mind, for example, that every state has its own legislation,” says Kemppainen.
* Who is Tuomo Kemppainen?
Tuomo Kemppainen is the CEO of Marsh Oy. Kemppainen has always been interested in and inspired by new things, innovations and technologies. He believes that change is always good and that there is no profit without risk.
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