Description: This article discusses the risk management approaches of insurers. The author described some of the current practices of the total return approach, how the total return approach is used in managing risks as a process, and a model that takes future sales into consideration and determines the appropriate fair valuation method of an ongoing business.

Description: Enterprise risk managers should explicitly relate the firm’s business model to the risk supported by the economic capital. The economic capital, risk drivers and business model are intricately integrated. The purpose of this paper is to demonstrate this point.