When it comes to ERM, HUB recommends the following: How Your Broker Can Help: ERM • Conduct an annual enterprise-level assessment with divisional or business unit assessments on a rolling calendar throughout the year so all segments of the organization are addressed every 18 to 24 months. • Initiate a new review of the current ERM strategy if a major change occurs in the organization, such as new leadership, expansion or a shift in market dynamics. • Plan for the consequences of a disruptive event, not just the event itself, and have contingency plans for protecting people, facilities, supply chains and operations. • To succeed, ERM exercises must be streamlined and fit the company culture. SUCCESS STORY: Using ERM and Insurance to Prepare for the Worst A grain grower in Canada engaged with HUB specialists to conduct an ERM assessment that enabled it to catalog and prepare for almost 60 enterprise-level risks. It was determined that the most severe risk to the business was a major drought that could substantially decrease the grower’s yield. A multi-year parametric hedge was structured that would respond when a drought of specified severity was experienced. In the second year of the policy, the client— along with its competitors—experienced a severe and prolonged drought that threatened the industry. The hedge policy was triggered and paid in full, thereby enabling the business to maintain its target financial strength. Later that year, it acquired a larger competitor. HUB International 2025 North American Outlook Report | 23