Description: Full version of Risk Management, November 2005, Issue No. 6.

Description: Based on interviews with C-level executives, this report offers insights on the role and actions of the global insurance industry in addressing climate change

Description: Cyber threats and their costs are a continuously evolving, moving target and a source of uncertainty.

Description: Emerging risks surprise us, they sneak up on us, and after they occur everyone wonders why we didn’t anticipate them in the first place. Hindsight is, indeed, 20/20. Try to recall how often you thought about the likelihood of the most recent financial bubble or a recent natural disaster prior to its occurrence. Even if you were aware of it and wanted to take action, the markets were unlikely to recognize the risk

Description: This paper evaluates the current practice of operational risk management in the insurance sector. Operational risk is nothing new in insurance, but, because of regulatory requirements, companies have initiated computation of risk capital for their operational losses. The current effort to manage operational risk is not a naturally evolving phenomenon, and operational risk, in the Basel Committee on Banking Supervision’s Basel II definition, is unlikely to be a significant cause of insurers’ failure. In addition, the current Basel II definition of operational risk is not suitable for the insurance sector. Consequently, the invention of models and tools based on the definition is incomplete and illusionary. My findings are based on the analysis of dozens of interviews with insurance industry professionals. I demonstrate the way operational risk is quantified in practice, show that the result obtained from this computation is of littl e use in managerial decision making and propose a set of policy recommendations illustrating the characteristics of operational risk in insurance. This study can be used as a platform for launching dialogues to initiate fresh thinking about operational risk in insurance beyond the current artificial and narrow boundaries.

Description: The Joint Risk Management Section's chairperson explains the Joint Risk Management Section Council members plans for the coming year, with a heavy focus on research and continuing education.

Description: The article provides a high-level, non-technical, introduction to artificial neural networks (ANNs) and deep learning with an application to risk management. The method relies on typical ANN components such as nodes, activation functions, and optimization through gradient descent.

Description: Climate risk modeling is taking center stage. With businesses increasingly expected to show how they assess, adapt to, and mitigate the risks of climate change, companies are asking: What is the right climate risk modeling approach for our business?

Description: An exploration of risk management challenges in the Middle East, including historical overcapitalization, inadequate data and governance issues.