The magazine of the actuarial profession

Risk & ERM

Risk to multinationals from natural hazards 'is increasing'Large multinationals' increasing reliance on international supply chains, infrastructure and markets pose a major risk to 'business as usual', a report published by the United Nations International Strategy for Disaster Reduction and PricewaterhouseCoopers today has warned. 20 May 2013
Global risk readiness has fallen since 2011, Aon survey findsThe proportion of organisations worldwide that feel fully prepared to deal with the main risks they face has fallen over the past two years, according to research published by Aon Risk Solutions today. 22 April 2013
Insurers are holding back on risk-adjusted pay, says Towers WatsonAlmost one-third of insurance companies have no plans to increase the link between their executive pay and risk, despite the importance they attach to risk management, Towers Watson has found. 18 April 2013
Financial crisis 'has changed SMEs' approach to risk'Five years of economic stagnation and volatility have forced UK small- and medium-sized enterprises to significantly change their approach and attitude to risk management, according to research published by insurer Zurich yesterday. 16 April 2013
Europe's severe winter weather in March 'cost €1.8bn'Winter weather last month affected much of Europe, causing economic losses worth an estimated €1.8bn, Impact Forecasting said yesterday. 05 April 2013
Insurance firms 'need to do more to embed risk appetite'The majority of insurance companies have defined the level of risk they are willing to accept but most are yet to apply these limits across all aspects of their business, Towers Watson said today. 18 March 2013
Enterprise risk management: Trusting to luckIs good fortune the only factor controlling balance sheet volatility resulting from changes in value in-force under Solvency II? Scott Eason and Viktor Knava report 07 March 2013
Extreme model risks: Model behaviourStochastic models might help financial firms to understand risks, but do we forget the risk that the model itself fails? Andrew Smith and Parit Jakhria investigate 07 March 2013
Risk and ERM: Worth the risk?Multinationals are having to face the reality of implementing enterprise-wide risk management practices. Paul Klumpes summarises his research into the effectiveness of ERM in such firms 07 March 2013
Assessing model risk in practiceAlan Forrest of RBS Group explores how the risk that a model is not fit for purpose sits at the core of contemporary risk management 27 February 2013

Page: [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [+11]

Enterprise risk management

Enterprise risk management (ERM) is generally accepted to be a wider subject than traditional risk management.

While traditional risk management focuses on identifying, measuring and monitoring risks to limit a company's losses, ERM recognises that businesses take risks to make a profit for their owners. It therefore attempts to strike a balance between too much risk and not enough risk in light of a business's strategy - making sure the risk-taking activities of the company are aligned with its objectives and its willingness, or otherwise, to take losses.

An ERM process will incorporate risk information into strategic planning, management decision making, product design and more.

Find out more