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Top 10 of 2014 – #2: 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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Top 10 of 2014 – #1: Guide to ERM: Writing an ORSA Report
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.
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ERM in Practice: Risk Policies and Standards
This fifth installment of ERM in Practice looks at a dozen global insurance and reinsurance groups, extracting several concrete examples from their ERM policies and frameworks.
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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....
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Risk Appetite and Tolerance
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.
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Risk Management in Financial Institutions: Beyond the Three-Lines-of-Defence...
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)...
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ERM: Discussing Fatness of Tails in Risk Models
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...
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Chief Risk Officer 3.0: Darwinism at Work
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. As the...
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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.
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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...
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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...
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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...
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Transparency is key to ERM
There are four good reasons to adopt a version of ERM that fits your business; this post is about one of those four reasons - Transparency.
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Discipline is key to ERM
Risk management matters the most when it is the most expensive and most difficult. But unless the regular steps of risk management have already become muscle memory, it is much less likely that you...
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2017’s most dangerous risks for insurers
We took a list of over 50 risks commonly found on insurer risk registers, and asked, “Which risks present the most danger to your firm in 2017?"
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Alignment is key to ERM
Risk has traditionally played a minor role in the strategic discussions of many firms. Often, planners get risk out of the way at the very start with a discussion of strengths, weaknesses,...
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Insurers: Master practical risk management and thrive
Insurers face a critical choice that can separate those that thrive from those that get by. Enterprise risk management (ERM) can be a mere regulatory compliance exercise that satisfies a minimum...
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Adaptability is key to ERM
Rain doesn’t know how to find the leak in your roof, yet somehow it does. And even if you take good care of your roof, one day the wind will blow from an unusual direction and the rain will find …
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Top 10 ideas insurers include in their risk appetite
In 2016, Willis Re performed a study of 48 (mostly U.S.-based) insurer risk appetite and tolerance statements.
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