Tag Archives: guides

Guide to ERM: Writing an ORSA Report

Reports

Insurance regulators have made the Own Risk and Solvency Assessment into one of the global Insurance Core Principles that need to be adopted in all countries. Continue reading →

Guide to ERM: Risk Measurement & Reporting

Measure

Peter Drucker is reported to have once said “what gets measured, gets managed.” That truism of modern management applied to risk as well as it does to other more commonly measured things like sales, profits and expenses. Regulators take a similar … Continue reading →

Guide to ERM: Risk Identification

There are a number of common threads linking the emerging regulatory guidelines; one of these is the fundamental importance of risk identification. 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 →

The Difference Between Risk and Loss

risk vs loss

Risk management has caused many people use the word RISK when they should be saying LOSS. And there is a world of difference between the two. Continue reading →

Guide to ERM: Stress Testing

egg in vice

Generally speaking, a stress test is an assessment of the financial impact of changing a specific variable, without regard to the likelihood of this change. Continue reading →

What Is Basis Risk and Why Does It Matter?

good apple bad apple

According to the Bible (Genesis chapter 27), Jacob hoped to marry Rachel. He agreed to work for Rachel’s father, Laban, for seven years in return for permission to marry Laban’s daughter. On the wedding night, Laban married Jacob to Leah, … 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 →

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 →