Description: This article discusses pointing out flaws in Incentive Compensation program using short term financial metrics like Total Shareholder Return may miss non-short term financial risk and non-financial risks.

Description: The actuary’s key role in the ORSA process should be to quantify the uncertainty surrounding the future financial results of the firm. By providing relevant standardized reports that clarify the uncertainty in terms easily understood by all stakeholders, the actuary will provide an essential element in the ORSA process. The dictum, "You can't manage what you can't measure." demonstrates the need to quantify risk, not just describe it qualitatively. While the ability to provide firm estimates of aggregate risk for complex organizations may not exist currently, doing so should be a target for the profession. The end result will be to enhance the financial security of the insurance industry at a time when all financial institutions are facing stakeholders skeptical about their financial condition. Part of the essay collection "Risk Metrics for Decision Making and ORSA"

Description: The author recommends the use of "minimally destructive scenarios" as part of an ORSA process, in order to deal with cognitive bias that can occur in risk decision-making. Part of the essay collection "Risk Metrics for Decision Making and ORSA"

Description: This article advocates for a lower variable part in salary and increase focus on other mechanisms (goal setting, simpler product, management, culture and processes). The psychological aspect of belonging to the incentive compensation pool is more important that the financial aspect.

Description: Using basic actuarial principles to develop a reasonable spending budget and to keep spending/savings on track to meet financial objectives.

Description: List organizations types that does not have incentive that is aligned with public interest or interest of the organization itself.

Description: Describes ways to avoid the next financial crisis by following the example of those who got it right and discerning what you could be doing to prevent your firm from experiencing excessive losses in future crises.

Description: When using models a company can develop blind spots to risks. This article explains how to recognize the weaknesses in the models by recognizing the markets response to the innovation within the insurance product. Part of the essay collection "Risk Metrics for Decision Making and ORSA"

Description: "Management must manage. An incentive compensation formula will not be sufficient."

Description: Reminding that incentive compensation needs to hit the target on average, needs to have variability related to the level of control over company’s fortune and ensure people are participating.