Risk perspectives - Brokers need to address their levels of risk

The news of Bradford & Bingley's £650,000 fine from the Financial Services Authority (FSA) for mis-selling of precipice bonds may appear on the face of it to contain few lessons for the insurance broking community.

However a closer look quickly shows its direct relevance in terms of risk management. As we well know, high standards of risk management are key criteria when underwriters are quoting for the professional indemnity (PI) insurance of a broking business.

The FSA highlighted failures i