Description: Actuaries and other managers of risk identify factors in modeling insurance risks because [i] they feel that these factors may cause the outcome of a risk, or [ii] that the factors can be managed, thus allowing analysts a degree of control over the system risk. The purpose of this paper is to propose a framework for quantifying the relative importance of a source of risk. The intent is that, with a quantitative measure of relative importance, risk managers will be able to sharpen their intuition about the relative importance of risks and be better custodians of financial security systems. This paper proposes a measure of relative importance that has its roots in both the statistics and economics literatures. The measure is intuitively appealing when assessing the effectiveness of basic risk management techniques including risk exchange, pooling and financial risk management. The risk measure is also shown to be useful in multivariate situations where several factors affect a risk simultaneously. The paper illustrates this usefulness by considering a pool of policies that is subject to mortality, the risk of a disaster that is common to all policies, and to a common investment environment.

Description: Sometimes, rare things happen and the least expected occurs. Indeed, some events occur once or twice in a lifetime leaving little room to learn from experiences. In financial markets, extreme events, no matter how rare, could have a profound impact on a company or even the whole country. Insurers are also not free from the impact of catastrophic large-scale extreme events. As a result, with pervasive economic and financial revolutions sweeping our world and potential devastative catastrophes, the increasing interest in tail risk management is fuelled by practical issues, including investment downside risk and insurance catastrophe risk. Thus, developing statistical techniques to model extreme investment and insurance losses is certainly a major task for risk managers. the purpose of our paper is to apply moment methods to estimate the joint events such as concurrent extreme investment loss and insurance loss. A novel aspect of this article is that it takes into account the correlation between different assets and insurance lines of business.

Description: Findings from EY Insurance Risk Management Team's 2016 (annual) Insurance Chief Risk Officer Survey.

Description: This article discusses the impact of ERM on smaller insurance companies.

Description: This article discusses four approaches to managing the enterprise-wide risk: Diversification, Loss Controlling, Risk Trading and Risk Steering.

Description: This article discusses challenges in achieving ERM stakeholder buy- in and ways to improve stakeholder engagement.

Description: This 2000 word essay won the Joint Management Risk Section 2016 Essay Prize, summarizing the present challenges, potential solutions and Actuarial opportunities.

Description: Discussion of how non actuaries are taking on many of the enterprise risk management roles of insurance companies. Discusses changes actuaries need to make to re-assert their roles. Also discusses roles actuaries can play in enterprise risk management outside of the insurance and pension industries

Description: The U.K. Pension Protection Fund (PPF) was established in April 2005 to protect the pensions of members of U.K. private sector defined benefit pension schemes that have insufficient assets and whose corporate sponsor fails. The fund takes over the pension scheme assets and assumes responsibility for the payment of compensation to the former members of the scheme. PPF is funded by a levy on the population of eligible schemes. The elements of the enterprise risk management of the fund have been developed by reference to practice within proprietary insurance institutions and other pensions funds; their application to this unique financial vehicle is the subject of this paper. The paper draws on references to relevant risk and actuarial work. It is designed to illustrate the application of principles and techniques to a real world example.

Description: This article discusses challenges in achieving ERM stakeholder buy- in and ways to improve stakeholder engagement.