Risk management is an integral part of our operations, and our Risk Management Cycle is a continuous process that ensures we have a detailed understanding of our risk profile.
Our principal risks
Using this process, Bupa Arabia has identified the principal risks that could prevent the organization achieving its strategic objectives and annual operating plans, while meeting its legal, regulatory and client expectations. Many of these risks remain systematic and inherent to our market place and/or industry, making them unpredictable and impossible to completely mitigate.
| Risk | Impact | |
| 1. | The growth of large providers | Might lead to inflation of medical/claims cost as members might switch from lower and medium tiers to large providers |
| 2. | The impact of claims settlement new system “NPHIES” on BA claims charges and processes | Could inflate medical costs |
| 3. | Providers’ increased pressure with the Regulators (mainly CHI) on the commercial settlement practices of insurance companies |
Possibly erode further profit margins |
| 4. | BA Readiness in performing a comprehensive BCP plan and practice | Might lead to difficulties in performing of DR full testing and dealing with a pandemics & process continuation |
| 5. | Increased and unexpected cyber threats | Might lead to information security breaches and/or business disruption, potentially causing financial losses and reputational damage |
| 6. | COVID-19 risks – the coronavirus global pandemic | May adversely impact the Company’s operations, finances, service levels, employees, customers, and suppliers |
| 7. | Medical inflation risks – expensive technological advancements in medical field, medical providers bargaining power, fraud and abuse, and aging and less healthy population | All may lead to an increase in incurred medical claims costs |
| 8. | Regulatory risks – increased regulatory changes. | May increase the cost of doing business and could lead to financial/other disciplinary actions, and reputational damage |
| 9. | Competition risks | May lead to aggressive pricing and margin deterioration, market share changes, and the possible loss of key leadership and technical talent |