Tag Archives: ERM

Reinsurance and enterprise risk management


Insurers are in the business of aggregating risk. This makes enterprise risk management (ERM) particularly important to insurers. In addition, insurers have an incredibly flexible and powerful tool available for sculpting their risks: reinsurance. ERM is a very new approach … Continue reading →

Cyber risk for insurers


Cyber risk has definitely stepped off the “emerging risks” list and moved in with the “current risks.”  Not a week goes by without another major news story about some firm or government agency being hacked and losing control over millions … Continue reading →

4 steps to linking strategy and ERM


Why don't insurers practice strategic risk management? Continue reading →

How much capital should an insurer hold?


An insurer’s management often wonders whether their company has the right amount of capital.  If they are holding too little, they may not be ready for when the next catastrophe occurs, or miss an opportunity to acquire a new affiliate … Continue reading →

For ERM, a Better Solution to Guessing Frequency and Severity Pairs for Risks


To compare your best guesses about frequency and severity of risks, you need to recognize that each risk likely has a wide variety of frequency severity pairs. Continue reading →

Chief Risk Officer 3.0: Darwinism at Work

CRO Darwininsm

The role of the chief risk officer (CRO) in European insurance companies has evolved quickly in the last 20 years. Now, I believe that the passage of Solvency II is moving the goalposts again. Continue reading →

ERM: Discussing Fatness of Tails in Risk Models

Taylor's Fat-Tailed Gecko , Hemitheconyx taylori

Most decision makers are familiar with the statistical average and standard deviation measures. But risk management typically focuses on unlikely “tail” events. The financial crisis helped popularize the term “fat tails” to represent the idea that these extreme events are … Continue reading →

Risk Management in Financial Institutions: Beyond the Three-Lines-of-Defence Paradigm

Holistic risk governance for Financial Institutions

In recent years, headlines about LIBOR rigging, PPI mis-selling, sanctions avoidance and rogue trading have revealed poor risk management and questionable values in the financial institutions (FI) industry around the globe. Continue reading →

Risk Appetite and Tolerance

tightrope walker

Although most insurers operate with a good risk appetite, in most cases, it is not articulated in a way that managers can connect to ERM terminology. Continue reading →

Emerging ERM Risk of 2015: Outsourcing


Outsourcing might just be the most common business management earnings booster of the past 10 years. Which means that it is also a top candidate for becoming a major emerging risk in the near future. Continue reading →