Developing a Flexible Enterprise Risk Management Program
The development process for a new Enterprise Risk Management (ERM) system is often disconcerting to experienced business managers. With most new projects the standard approach is to completely define a...
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Enterprise Risk Management in Lean Times
The good news for risk managers is: since times have been tough, company management is listening to your message. The bad news for risk managers is: since times have been tough, there’s not much...
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Five Bucket ERM
Forget about risk registers and risk models. What you really need is a good Risk Bucket system. To manage your risks, you need to know: Which bucket each risk goes into How much is already in each...
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Risk Attitude and Risk Management – How we Fail to Agree About Risk
What's your risk perspective and how does your risk attitude match with your experience of risky situations?
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Resiliency vs. Fragility
Is there really a choice? Who would choose to be Fragile over Resilient? But many firms found that they had made the Fragility choice for their supply chains when the Earthquake, Tidal wave and...
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U.S. Insurers Need to Get Ready for ORSA
Slowly, but surely, and without a lot of fanfare, U.S. insurance regulators have been orchestrating a sea change in their interaction with companies over solvency. Not as dramatic as Solvency II in...
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What to Do About Emerging Risks…
WillisWire has on several occasions featured opinions from a large number of our contributors about what might be the next emerging risk in various sectors. But what can be done once you have...
View ArticleHas the Risk Profession Become a Spectator Sport?
The 2013 ERM Symposium goes back to Chicago this year after a side trip to DC for 2012. This is the 11th year for the premier program for financial risk managers. This year’s program has been developed...
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ERM Symposium Panel: Actuarial Professional Risk Management
In just a few days, actuaries will be the first group of Enterprise Risk Management (ERM) professionals to make a commitment to specific ERM standards for their work. In 2012, the Actuarial Standards...
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Overwhelming Majority of Risk Managers do not Believe ERM can Change...
91% of the risk managers who attended a workshop hosted by Willis at this year’s Airmic conference do not see ERM as a vehicle that can change organisational behaviour. Speaking at the workshop, Paul...
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Podcast: Is ERM a Failure?
During the recent financial turmoil many of the worst-affected companies had developed what they believed were robust and sophisticated ERM capabilities, so why were they not prepared to cope with the...
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Risk Management: Adaptability is Key to Success
There is no single approach to risk management that will work for all risks nor, for any one risk, is there any one approach to risk management that will work for all times. Rational adaptability is...
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New Actuarial Standards Adopted for ERM
Earlier this year, the Actuarial Standards Board adopted two new Actuarial Standards of Practice , ASOP 46 and ASOP 47 , likely to affect Enterprise Risk Management (ERM) practice worldwide. What the...
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Guide to ERM: Risk Measurement & Reporting
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,...
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ERM Practices: Risk Limits and Controls
At the most fundamental level, enterprise risk management can be understood as a control cycle. In an insurance company’s risk control cycle, management needs to first identify the key risks....
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ERM Practices: Risk Organization
Some say that in a perfect world, there is no need for a separate risk organization. But that is probably not true. Besides, we do not live in a perfect world anyway. There are four common...
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ERM Practices: Policies and Standards
Risk management policies are nothing more and nothing less than a clear statement of what the insurer intends to do within its ERM program. The entire set of risk policies can be all included in one...
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ERM Practices: Stress Testing
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...
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Guide to ERM: Risk Capital
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,...
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Guide to ERM: Risk Appetite and Tolerance
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....
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