Risk Metrics for Decision Making and ORSA
Risk Metrics for Decision Making and ORSA
The Joint Risk Management Section of the Society of Actuaries (SOA), the Casualty Actuarial Society (CAS) and the Canadian Institute of Actuaries (CIA), in collaboration with the International Network of Actuaries in Risk Management (IN-ARM), are pleased to release our third essay e-book, this time addressing “Risk Metrics for Decision Making and ORSA.”
TRUE OBJECTIVE OF RISK MANAGEMENT
These essays address the philosophies considering the “real” objectives and considerations of risk management. As was learned from our earlier series of essays, most risks that manifest themselves are not directly caused by any exogenous event, but rather from the decisions, biases, and behaviors of people. Although often called the “softer” side of ERM, it mostly makes up the ‘harder” side of contingent consequences, as learned from the financial crises.
How to Make Sure that You Take the Right Road to ERM
By Dave Ingram
Vounó Borealis (Mountain Wind)
By Jason B. Sears
Too Good to Be True
By Victoria Grossack
Minimally Destructive Scenarios and Cognitive Bias
By Mary Pat Campbell
“Effective Resilience” and Interdisciplinary Approaches to Risk
By Rick Gorvett
STAKEHOLDER MANAGEMENT
Multiple groups have keen interest and insight in the insurance industry, usually resulting in divergent points of view. What the regulatory authorities expect out of an initiative may be quite different from the expectations and/or needs of the other stakeholders (e.g., shareholders, policyholders, employees, management). The primary focus of these two essays reflects the thoughts underlying these potentially divergent expectations.
Clarifying Uncertainty
By Stephen P. D’Arcy
Is ORSA a Good Move for All the Stakeholders?
By Yayuan Ren and Jianwei Xie
GENERAL OVERVIEW OF WHAT ORSA IS
What is ORSA? What is ERM? These essays attempt to address these questions directly, and in rela¬tion to the other, through various similar and sometimes different perspectives.
More than Regulatory Compliance
By Sam Gutterman, Brian Paton and Sunil Sen
Focusing on Own Risk of the ORSA Process
By Max Rudolph
Understand ORSA Before Implementing It
By Anthony Shapella and Owen Stein
Some Key Questions an ORSA Should Answer
By Loïc Chenu
Effective Risk-Based Decision Making: ORSA and Beyond
By Guillaume Briere-Giroux and Mark Scanlon
MODELS AND MEASURES
The following essays consider the wide range of modeling and quantification aspects underlying a company’s ORSA. Issues discussed range from assessing the risk of a particular model being wrong and its corresponding miscommunication minefield to considering what the “true-and-pute” measure of risk ought to be, and whether that can be even agreed on.
Arbitrage-Free Perspective on Economic Capital Calibration
By David Wang
How an Insurance Company Can Better Measure and Understand its “Own Risks”
By Russell Sears
The Actuary’s Use of Catastrophe Models in ORSA
By Anders Ericson and Kay Cleary
Company Management’s Reaction Capacity and Management Actions: Need and Difficulty to Take These into Account in ORSA
By Stephane Loisel
Risk Metrics for Decision Making and ORSA
By Stephen J. Strommen
Economic Capital, Countercyclicality and a “Plausible” ORSA
By Evren Cubukgil and Wilson Ling