Increasing the Usefulness of ERM to Insurance CompaniesExecution Risks Although financial risks are the primary deter- minant of the volatility of financial results ... misleading signals exists because there is no direct and simple relationship between measures of ROE ...
Description: This article is based on the author's discussions with many executives of insurance companies regarding the challenges and limitations in ERM at its current state of evolvement. The following areas need to be addressed and improved on, in the author's opinion, to 'take ERM to the next level': 1. Reconciling Risk Concerns of Creditors and Shareholders. 2. Managing of Operational Risk. 3. Execution Risks. 4. Producing Credible and Useful Risk Adjusted Performance Measures. 5. Aligning Performance Metrics with Management’s Performance Measurement Philosophy.Hide
- Authors: Jean Pierre Berliet
- Date: Aug 2008
- Competency: Strategic Insight and Integration; Technical Skills & Analytical Problem Solving
- Publication Name: Risk Management
- Topics: Enterprise Risk Management