Description: This article discusses how to find the right Enterprise Risk Management strategy for a company. The authors assert that ERM effectiveness ultimately resides with people through collaboration, wisdom and judgment.

Description: This article looks at Enterprise Risk Management - ERM - and how executive compensation’s disconnect from long term stock performance has been a contributor to the current financial crisis. The author discusses the “Stock Performance Protection Plan,” or SSSP, and how it can encourage executives to buy into ERM. The author further discusses his plan, and the provisional patent he recently received.

Description: The first of two parts of a panel discussion, by conference call, on the the evolution of Enterprise Risk Management at life insurance companies, and actuaries' roles in that evolution.

Description: How insurers can include a liquidity score and liquidity stress scenarios as part of their asset liability management (ALM) protocol.

Description: This article will examine four approaches under two different methods (eight in total) used to combat the non-additivity of key rates and will compare them under a number of rate environments.

Description: This article will examine four approaches under two different methods (eight in total) used to combat the non-additivity of key rates and will compare them under a number of rate environments.

Description: Introduces the concept of total risk analysis, a methodology used to answer questions like "what are the chances we will lose more than $1 million"

Description: Joint Risk Management Section chairperson's corner, June 2023

Description: The article introduces a cashflow matching strategic asset allocation (SAA) framework for life insurers. Given the recent shift to higher interest rates after two decades of persistent low interest rates, insurers have an opportunity to enhance their asset liability management by rebalancing asset portfolios to narrow duration gaps and attain higher risk-adjusted yields. The framework aims to align investment objectives with economic, regulatory, and rating agency requirements. It prioritizes cashflow matching as the primary optimization goal and incorporates security-level asset information to assist portfolio managers in executing SAA seamlessly. The article highlights the benefits of the cashflow matching SAA framework, including greater attention to cashflow matching, unbiased results, readily executable strategies, and stable economic reserves. A case study is included to demonstrate the effectiveness of the framework in improving risk-adjusted return and cashflow matching for a representative liability block.

Description: Model Risk Management at insurers has been an established practice for well over ten years now. Until recently, a primary focus of model governance was on actuarial models. The Gen AI evolution we’ve experienced in the last two years, has shone a spotlight on “all things AI”. Along with the increased capabilities AI brings, there is increased concern for the proper use of these models, protection of IP, safeguarding of PII, and overall security. This session will bring together a diverse panel to discuss how we can adapt our established practices for these new models to minimize the risks that come with Gen AI and help our organizations optimize the benefits of AI.