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

Description: Deciding where to spend that next dollar of capital is at the heart of financial management. Executive teams regularly grapple with decisions on whether to purchase a new Enterprise Resource Planning (ERP) system, invest in growing a distribution channel, expand into a new geographic area, or develop a new product, among many. The great news is there is no shortage of sound financial theory and logical rationale for making these transformational decisions. Yet business literature is filled with examples of decisions that did not meet expectations, sometimes materially missing the mark when comparing experience to assumptions. This is particularly the case with mergers and acquisitions, where multiple studies have shown that a sizable majority of such transactions do not achieve their intended outcomes. While some of the disappointing returns are attributable to random chance and unfortunate circumstances, a material number of them can be traced back to cognitive issues that arose during the decision-making process. Mental shortcuts or heuristics taken by individual decision-makers in evaluating information, as well as organizational dynamics such as groupthink both contribute to sub-optimal choices involving significant outlays of money. Being aware of these and having established protocols to mitigate against them can substantially improve decision-making around capital allocation and reduce misallocation of funds. In this session, the panelists discuss several common cognitive biases that can adversely impact the capital allocation decision process, introducing the notions of time, accounting convention, positivity, hierarchy, and social proof in describing them. Historical case examples of sub-optimal capital allocation are then explored, identifying the contributing behavioral factors including the simultaneous confluence of multiple factors. The panelists will close the session with several suggestions for attendees to consider for incorporation into their decision-making processes. At the conclusion of the session, attendees will be able to: - Learn common cognitive biases that impact capital allocation decisions - Differentiate which biases impact different aspects of the capital allocation process - Build awareness of biases affecting capital allocation decision models - Mitigate cognitive biases present in decision making processes

Description: Session 2H: Reinsurance Market Update

Description: In this session, we will examine AM Best's credit rating methodology, the evaluation of Enterprise Risk Management (ERM) Programs for insurers, and how ERM evaluations are incorporated into ratings. AM Best staff will present the results of a study of AM Best-rated health insurers' ERM programs.

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: High level overview of JRMS research activity.

Description: Read the August 2016 issue of Risk Management published by the Joint Risk Management Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.

Description: Read the December 2016 issue of Risk Management published by the Joint Risk Management Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.

Description: The purpose of this paper is to define a predictive model, based on known system attributes, for assessing risk associated with information systems.

Description: Update on issues, priorities and key messages from the Joint CAS / CIA / SOA Risk Management Section Council.