[Skip to content]

Sign up for our daily newsletter
The Actuary The magazine of the Institute & Faculty of Actuaries
.

Risk is our Business

ERM – guide

The Society of Actuaries, through its risk management section of over 2,000 members (it is not necessary to be a member of the Society to join the risk management section), has this month published an excellent guide to the emerging discipline of enterprise risk management (ERM). The new guide can be downloaded from http://library.soa.org/library-pdf/SPG0605ERM.pdf.

New white paper from IBM

Leading international consultant IBM last month launched a paper on ERM in insurance which concluded:

‘The insurance business operates under a unique set of economics. These economics, in conjunction with recent aggressive regulatory initiatives, can make insurance a difficult business to manage.

‘In the past, the insurance business has been managed with a focus on premium growth and non-claim-related cost containment. This focus, however, is beginning to evolve into a focus on pricing management and risk control. Additionally, aggressive regulatory initiatives, globalisation, and quantum leaps in information technology are causing an organisational design evolution from silo structures to more strategy-focused structures.

‘One result of the changes described above is a greater need for synthesised and co-ordinated managerial information. Such information can help insurance executives to more efficiently pursue value-creating activities. Over time, it will also help facilitate the management of the risks resulting from those activities across the insurance enterprise.’

The paper, together with related resources, can be downloaded through a subject search at www.ibm.com.