Description: Improving understanding of the complex relationships among financial entities is critically important for risk managers and for financial authorities charged with multiple policy objectives. High quality information is lacking at both the intra- and inter-enterprise levels and to support analysis of the financial network. Put simply, the current quality and quantity of relationship data is not sufficient to deliver on the ultimate objectives. For the purpose of this discussion we use a very generic definition of a term relationship somewhat similar to the definition used to describe human relationships. And like in the human relationships case we will not claim that only marriage and blood connection makes your relatives, but also loaning a book, loving, hating and sharing a flat. In the financial context, the relationships may be determined by accounting rules set, for example, by IFRS or US GAAP, as well as regulatory requirements in areas o f risk management, market integrity, know-your-client, network analysis and statistical consolidation. The financial industry and regulators have spent countless hours arguing and debating the definition of ownership. The problem lies in the question itself. We suggest that as part of any relationship data system the best approach is to put the question aside and avoid a conceptual and practical quagmire. Rather, we recommend collecting and storing less-subjective granular data on theactual legal and economic relationships between firms, which provides a flexibleframework from which any user can answer the question on corporate relationships he or she determines is appropriate at a given time. Encouragingly, technological solutions are available to accommodate this multiplicity of requirements in a single solution. The paper outlines where the practical challenges are that inhibit the development of high quality relationship data and how they can be overcome.

Description: In this essay, we focus on the “Prospective Solvency Assessment” aspect of the NAIC’s ORSA. This places a spotlight on an insurer’s strategic decision making from a risk and capital management perspective. It requires those in senior management to describe actions they would take to address possible adverse changes in their risk and solvency position, i.e., what they would do to reduce risk, increase capital, and/or adjust the business strategy. We contend that by applying a slightly broader scope than the specific requirements of the NAIC’s ORSA, insurers can develop this into a valuable process to support risk-based decision making. In this essay, we initially consider how to determine which metrics to include in such a process and then discuss some important business requirements and practical challenges for implementing a calculation approach to support it. Part of the essay collection "Risk Metrics for Decision Making and ORSA"

Description: This paper develops a conceptually rigorous, but practical, approach to estimating risk margins that are consistent with actuary's cost of capital concept.

Description: This paper discusses a test of whether ERM influences insurers’ stock market performance. Results show that stock market performance is linked to the characteristic of industry events and specific firm characteristics rather than to the success of ERM.

Description: 2011 SOA Enterprise Risk Management Symposium, Chicago. This paper reviews a risk management theory that deals with correlated, non-normally distributed factors, and then applies risk management techniques to the U.S. steel industry using futures contract hedging.

Description: The paper takes a critical stand on best ERM practices as proposed by the Cultural Theory of Risk and especially by the work of Ingram, Underwood and Thompson (IUT). The paper claims that both mainstream-type ERM practices ("rigid ERM") and IUT's alternative ("fluid ERM") fail in critical parts to account how risk managers, in everyday normal tasks, develop their ERM practices in a context-dependent way. Context-dependent ERM takes into account the whole context, that is both the recognition that risk environment changes and the need for the firm to develop a stable (yet open to meaningful changes) sociotechnical identity with a consistent risk attitude and appetite.

Description: 2011 SOA Enterprise Risk Management Symposium, Chicago. This paper suggests the use of a policy event-based loss estimation method using expert input and simulation for forecasting long duration expenditures: that is to say, there is an efficient time, which is random and observable to replace a physical asset.

Description: This paper identifies some of the special ERM considerations that a corporation which has employees who are members of a multi-employer pension plan, MEPP, should include in its ERM program. The focus of the paper is on the MEPP as an entity and tools to be used in its ERM. From 2006 Enterprise Risk Management Symposium, M-AS06-1.

Description: 2011 Enterprise Risk Management Symposium, Chicago. This paper uses a case-study research design looking at two companies: Infosys and Rolls-Royce Corp. The goal of the research is to develop an explanation of how ERM brings about the strategic implications or its “promise” as it is popularly known in the ERM circle. The influential factors and how they are linked to the ERM process of achieving strategic implications are highlighted.