Hostname: page-component-78c5997874-v9fdk Total loading time: 0 Render date: 2024-11-15T07:27:14.443Z Has data issue: false hasContentIssue false
  • English
  • Français

Enterprise Risk Management from the General Insurance Actuarial Perspective

Published online by Cambridge University Press:  10 June 2011

M. H. Tripp ,
C. Chan ,
S. Haria ,
N. Hilary ,
K. Morgan ,
G. C. Orros ,
G. R. Perry  and
K. Tahir-Thomson
M. H. Tripp
Affiliation:
Ecclesiastical Insurance, Beaufort House, Brunswick Road, Gloucester GL1 1JZ, U.K. Tel: +44 (0)1452 336591; Fax: +44 (0)1452 336586; Email: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

The authors have reviewed over 60 texts on the subject of Enterprise Risk Management (ERM). In this paper they set out a summary of ERM based on three of those sources, selected for their relevance and breadth of view. The paper observes that the approaches described vary widely in nature. A separate ‘on-line” source is provided, which summarises key readings from the 60 texts. Combining findings from these texts with the authors' own experiences, the paper suggests some best practice checklists, designed to enable organisations to take stock of their current ERM frameworks. It discusses other aspects of ERM for practitioners, including extreme events, opportunity management and the link with corporate strategy. The paper looks at immediate and longer-term implications for actuaries in the United Kingdom, and then poses questions about future professional development and education. It suggests an emerging role for the ‘ERM actuary’, and, finally, it suggests future work to progress the development of ERM and the actuaries' role.

Keywords

Enterprise Risk ManagementRisk ManagementGeneral InsuranceQuantification of RiskFinancial ServicesCapital AssessmentCapital ManagementPeopleProcess and SystemsRegulations and RiskStress and Scenario TestsRisk CycleActuarial EducationBasel IISolvency IIProfessional DevelopmentInstitute of Actuaries StrategyStrategic PlanningChange and Opportunity ManagementRisk and UncertaintyGovernanceControl FrameworkInformationIndicators and RiskChief Risk OfficerRisk ModellingRisk AppetiteRisk MapsRisk ExposureRating Agencies and Risk
Type
Sessional meetings: papers and abstracts of discussions
Information
British Actuarial Journal , Volume 14 , Issue 3 , 01 September 2008 , pp. 433 - 525
Copyright
Copyright © Institute and Faculty of Actuaries 2008

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Cabinet Office (2002). Risk improving Government's capability to handle risk and uncertainty. Strategy Unit, Cabinet Office, HM Government, London, U.K.Google Scholar
Chapman, R.J. (2006). Simple tools and techniques for enterprise risk management. John Wiley & Sons, Inc., New Jersey, U.S.A.Google Scholar
Collins, J. (2001). Good to great: why some companies make the leap · and others don't. HarperBusiness, New York, U.S.A.Google Scholar
COSO (2004a). Enterprise risk management — integrated framework, application techniques. COSO (The Committee of Sponsoring Organisations of the Treadway Commission), September 2004.Google Scholar
COSO (2004b). Enterprise risk management — integrated framework, executive summary. COSO (The Committee of Sponsoring Organisations of the Treadway Commission), September 2004. http://www.coso.org/Publications/ERM/COSO_ERM_ExecutiveSummary.pdfGoogle Scholar
Day, G.S. (2007). Is it real? Can we win? Is it worth doing?: managing risk and reward in an Innovation Portfolio. Harvard Business Review, December 2007.Google Scholar
DeLoach, J. (2000). Enterprise-wide risk management. Financial Times/Prentice Hall, England.Google Scholar
Garratt, R. (2003). The fish rots from the head: the crisis in our boardrooms — developing the crucial skills of the competent director. Profile Books Ltd., London, England.Google Scholar
Institute of Actuaries (2006). GN12: general insurance business: actuarial reports. Institute of Actuaries, London, http://www.actuaries.org.uk/files/pdf/map/GN12V4-0.pdfGoogle Scholar
Jones, A.R.et al. (2005). GRIT consultation paper. Institute of Actuaries. http://www.actuaries.org.uk/files/pdf/general_insurance/grit_consultation.pdfGoogle Scholar
Jones, A.R.et al. (2006). A change agenda for reserving. British Actuarial Journal, 12, 435–619.CrossRefGoogle Scholar
Jones, A.R.et al. (2007). Quantification and reporting of uncertainty for GI reserving. GI ROC (General Insurance Reserving Oversight Committee), Institute of Actuaries. http://www.actuaries.org.uk/files/pdf/general_insurance/giroc_reservingpaper_0807.pdfGoogle Scholar
Lam, J. (2003). Enterprise risk management: from incentives to controls. Wiley Finance.Google Scholar
Kloman, H.F. (1976). The risk management revolution. Fortune.Google Scholar
Kloman, H.F. (1999). Milestones: 1900 to 1999. Risk Management Reports, 26(12).Google Scholar
McNamee, D. (2004). Risk reflections: based on his extensive experience. Internal Auditor, October 2004 (report of an interview).Google Scholar
Miccolis, J. (2000). Enterprise risk management in the financial services industry: from concept to management process. International Risk Management Institute. www.irmi.com/expert/articles/miccolis003.aspGoogle Scholar
Moyer, D. (2006). Blindsided. Harvard Business Review.Google Scholar
Orros, G (2007a). ERM literature review. GIRO 2007 Convention, Institute and Faculty of Actuaries. http://www.actuaries.org.uk/files/proceedings/giro2007/BHPrize_Tripp_Appendices.zip and via http://www.actuaries.asn.au/NR/rdonlyres/1C5D0157-1B4E-4059-B75E-32F751723D99/2811/ERM_LitRev_Main_180807.pdfGoogle Scholar
Orros, G (2007b). ERM bibliography and literature review. GIRO 2007 Convention, Institute and Faculty of Actuaries. http://www.actuaries.org.uk/files/proceedings/giro2007/BHPrize_Tripp_Appendices.zip and via http://www.actuaries.asn.au/NR/rdonlyres/1C5D0157-1B4E-4059-B75E-32F751723D99/2812/ERM_LitRev_Annex_180807.pdfGoogle Scholar
Roberto, MA.et al. (2006). Facing ambiguous threats. Harvard Business Review.Google Scholar
Rumsfeld, D. (2002). Department of defense news briefing. February 12, 2002. http://www.quotationspage.com/quote/30526.htmlGoogle Scholar
Standard & Poor's (2005). Insurance criteria: evaluating the enterprise risk management practices of insurance companies. Standard & Poor's, McGraw Hill, U.S.A.Google Scholar
Taleb, N.N. (2004). Fooled by randomness: the hidden role of chance in life and in the markets (2nd edition). The Random House Publishing Group 2005, published in Penguin Books 2007, London, England.Google Scholar
Taleb, NN. (2007). The black swan: the impact of the highly improbable. Allen Lane, an imprint of Penguin Books, London, England.Google Scholar