Description: This article talks about what insurance companies and other financial institutions can do to develop plans for mitigating, recovering from and preventing the disruptive effects of potential crises.

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.

Description: The present crisis in global financial markets has created an impression that enterprise risk management ERM has failed broadly to protect the safety and soundness of the financial system as well as that of many institutions, including insurance companies.