Tag Archives: ERM

ERM in Practice: Risk Measurement

ruler

In our second installment of the ‘ERM in Practice’ series, we look specifically into the 2013 Annual Reports of eight global insurance companies (five European and three Non-European) and four international reinsurance groups with the purpose of identifying commonalities in … Continue reading →

ERM in Practice: Risk Organization

chess defense

Discussions of enterprise risk management (ERM) practices often seem almost totally theoretical. But in fact, those practices are very real for many companies. One of the most important aspects of an ERM program is the “who” of ERM. We call … Continue reading →

Using a Financial Impact Analysis to Define Risk Tolerance

Analytics

Many of the world’s leading corporations do not have an explicit and agreed definition of their risk tolerance or appetite. We facilitate and guide many clients in this area. An important tool for us to start a conversation about tolerance … Continue reading →

What Effect are New Regulatory Requirements Having on Risk and Insurance Managers?

overwhelmed risk manager

While I have been a broker for eight years, the 20-plus years I spent as a risk manager at a financial institution still dominate my outlook on issues. I will no longer fight it—resistance is futile! So welcome to my … Continue reading →

The Difference Between Risk and Loss

risk vs loss

Risk management has caused many people to substitute one four-letter word for another. They will use the word RISK when they should be saying LOSS. And there is a world of difference between the two. It is the difference between … Continue reading →

Is Risk Changing or is it All in our Heads?

All in your head

Accurately identifying and prioritising risk is crucial for business success and, more specifically, to help risk managers decide on investment priorities. Establishing a rational, dispassionate view of risk helps with making a more informed decision about how to treat that … Continue reading →

Adapting to Climate Change: Insurers as Bellwether

ClimateChange_Reinsurance

Insurance touches and is touched by much of human activity around the globe.  So it should not be a surprise that insurers can be expected to be a bellwether for the economic impact of climate change. Continue reading →

Guide to ERM: Writing an ORSA Report

Reports

Insurance regulators have made the Own Risk and Solvency Assessment (ORSA) into one of the global Insurance Core Principles that need to be adopted in all countries. Several countries have already adopted an ORSA requirement and in all cases, there … Continue reading →

Guide to ERM: Economic Capital Model Validation

Analytics Graph (green)

Fundamentally, an economic capital model seeks to consistently use exposure information and limited actual experience to estimate the impact of remote events that may or may not have ever happened in the past. Those who seek to make use of … Continue reading →

Guide to ERM: Risk Management Disclosures

show your cards

U.S. insurers have made the case to the insurance regulators at the National Association of Insurance Commissioners (NAIC) who have been drafting the U.S. Own Risk and Solvency Assessment (ORSA) requirements that the ORSA report as defined will contain sensitive … Continue reading →