Tag Archives: ERM

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 →

Guide to ERM: Change Risk

turn arrow

The main processes for enterprise risk management in an insurer involve two levels of control cycles: The first level looks at the individual risks and sets out limits, controls and mitigation processes to assure that each individual risk that is … Continue reading →

Guide to ERM: Risk Management Culture

working group

The culture of a business can be easily observed in the statements and policies of top management and in the behaviors of management and employees. But to truly understand the culture of a business you need to know the shared … Continue reading →

Guide to ERM: Risk Governance

board

What should a board expect from management regarding risk and resiliency? As a part of strong enterprise risk management practice the board of directors should consider the following: Continue reading →

Guide to ERM: Interdependence of Risks

newton balls

One of the reasons that so few people predicted anything like the financial crisis of 2007-2008 was the common wisdom that housing markets in different parts of the U.S. moved independently of one another, and that there was very little … Continue reading →

Guide to ERM: Risk Appetite and Tolerance

fork and plate

Insurers are increasingly being asked to explain their approach to risk management and as a part of that discussion to clarify their risk appetite. Rating agencies are all asking about risk appetite. Regulators around the world will all soon require … Continue reading →

Guide to ERM: Risk Capital

Ben-brella

Knowing the amount of surplus an insurer needs to support risk is fundamental to enterprise risk management (ERM) and to the own risk and solvency assessment (ORSA). With the increasing focus on ERM, regulators, rating agencies, and insurance and reinsurance … Continue reading →

Guide to ERM: Stress Testing

egg in vice

In the world of mechanical engineering, stress testing involves subjecting a mechanism to extreme conditions, considerably beyond the intended operating environment, in order to determine the robustness of the device and the circumstances under which it might fail. Financial stress … Continue reading →