Description: The purpose of this paper is to outline a framework that measures 'decision' and to argue that such a measure is the rightful focus of the enterprise. The paper develops the principle of maximizing expected utility as a normative decision theory from its philosophical roots in order to motivate its proper usage i.e., to the enterprise's ultimate good. From 2006 Enterprise Risk Management Symposium, M-AS06-1.

Description: This paper presents an advanced approach to enterprise risk management that, according to the author, significantly improves upon current approaches. The two fundamental elements are a focus on the management of strategic plans and a heavy reliance upon probability theory.

Description: Interest sensitive products including SPDAs can be thought of as spread lending business. The purpose of the paper is to introduce the excess spread approach to measuring the profitability of nonparticipating insurance products. The article describes how the excess spread approach is used to price and manage the products and its risks. From Society of Actuaries Reporting Monograph, M-AS99-1.

Description: The objective of this paper is to explore the issues necessary to develop an integrated model of operational risk (OR) and financial risk (FR) within the framework of enterprise risk management (ERM). From 2007 Enterprise Risk Management Symposium, M-AS07-1.

Description: The paper discusses the arguments supporting the need for risk culture to transition into ERM culture to be embedded across financial organizations. Creating and maintaining strong ERM culture is paramount to a lasting and meaningful ERM program. It is essential for organizations to understand what ERM culture is, how it gets established and in what way affects the process of ERM implementation. Often, the implications of financial enterprises not focusing on the significance of ERM culture manifested in severely compromised ability to generate sustainable value and market competitive advantage. This paper calls for rethinking the role of ERM culture in the context of managing risks.

Description: The underlying premise of this paper is that enterprise risk management (ERM), as it continues to evolve as both a process and a collection of risk management techniques, can benefit from several different (but ultimately somewhat related) “megatrends.” The core of this paper concentrates on the impact on ERM of one of those megatrends: the emergence of a behavioral economics perspective, which is beginning to have a large impact on our understanding of the economy and on certain economic and business processes. The evolution and context of behavioral economics are described, and potential implications for the practice of ERM are discussed. The paper culminates with a variety of specific suggestions for ERM practice in response to findings from behavioral economics research, specifically a number of human cognitive dissonances inconsistent with traditional economic theory.

Description: Insurance company issues that do not necessarily arise in banks are identified and utilized to develop insurer ERM modeling approaches that start from the work done for banks but respond to insurance-specific matters. From 2006 Enterprise Risk Management Symposium, M-AS06-1.

Description: 2011 SOA Enterprise Risk Management Symposium, Chicago. The stated purpose of this paper is to consider whether a more comprehensive and timely measurement framework for risk exposure is now needed and to examine one possible approach. This paper proposes a new approach to risk measurement that, along with capital measurement and more rigorous oversight, will allow banks an ability to manage risk.

Description: 2011 Enterprise Risk Management Symposium, Chicago. This presentation discusses how real world Grey Swan scenarios are excellent choices for stress and resiliency testing. In addition, an example is provided of a set of Grey Swan scenarios which correspond to the RBC C-3, Phase II.