Munich Re and Malik Management Zentrum St. Gallen develop self-assessment tool for top managers in the German legal sphere
Munich Re and Malik Management Zentrum St. Gallen have developed a tool that allows the managers of corporations to assess themselves. This novel form of D&O self-assessment helps directors and officers (including members of the Boards of Management and Supervisory Boards) identify management deficits and avoid liability pitfalls. It is a practical and interactive PC tool that gives users the opportunity to define the areas in which there is need for action and provides concrete assistance.
Experts estimate that every tenth company in Germany has already been involved in lawsuits filed against one of their top managers on the grounds of actual or alleged mismanagement. And the trend is steadily rising. The financial consequences of poor management decisions may be substantial for all parties concerned. The growing number of laws are making it more and more difficult for managers to ensure that all legal requirements have been fulfilled. And this applies equally to large, medium- and small-sized companies.
The recommendations in the D&O self-assessment are based on the German Corporate Governance Code, the expertise of Munich Re – a global risk carrier – and the management know-how and practical experience of Malik Management Zentrum St. Gallen.
The information and assistance provided to users in the program is divided into three blocks. The first block conveys tried and tested management knowledge on various issues, for instance on the definition of a company's business objectives and strategy, on risk management, controlling, reporting and communication. The second block includes a questionnaire that users must complete in order to obtain an assessment of their management skills. The third block informs users about legal requirements and the relevant bases of liability.
Torsten Jeworrek, member of Munich Re's Board of Management in charge of fundamental reinsurance issues: "The D&O self-assessment tool, which is mainly available from our clients, is designed to make Munich Re's expertise accessible to the managers of other German companies. If improved company management prevents D&O losses, our company can only benefit."
Prof. Dr. Fredmund Malik, manager and owner of the Malik Management Zentrum St. Gallen, says "there is only one way to manage a company – and that is in the interests of the company itself. Management must be geared to the company's viability and financial soundness – in other words to its competitive edge and sustained profitability. It is the only way all other interests, no matter how vociferously and aggressively they are represented, can be weighed against the interests of the company. It is the only option for integrating short- and long-term thinking. And it is the only way to organise the company's governing bodies, structure its responsibilities and distribution of tasks, and regulate its interpersonal and intra-company cooperation and relations."
The Munich Re Group operates worldwide, turning risk into value. In the business year 2005, it achieved a profit of €2,743m, the highest in its 126-year corporate history. In 2005, its premium income amounted to approximately €38bn and its investments to around €177bn. The Group is characterised by particularly pronounced diversification. It has approximately 38,000 employees in 60 countries throughout the world and operates in all lines of insurance. It is one of the world's leading reinsurers and, through the ERGO Insurance Group, the second-largest provider in the German primary insurance market and a leading player on several other European insurance markets.
Malik Management Zentrum St. Gallen has been a leading management consulting and education provider for over 30 years. The Centre, which is headed by Prof. Dr. Fredmund Malik and employs some 200 staff members, has offices in St. Gallen, Zurich, Vienna and London. It specialises in system-oriented management theory. The group stands for accurate and good management, for concepts consistent with current market practice and sustainable results in all areas of top and general management.
This media information contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.