Best practices in risk management Archives - Page 5 of 5

Internal Model Myths
Internal Model Myths

Internal Model Myths

For a long time, many (re)insurance companies have realized the need for risk-based valuations and solvency capital measurement and have started developing internal economic capital models which suit their needs. This is without prompting from regulators and rating agencies. Why? Such models provide a common measurement basis across all risks (e.g. same methodology, time horizon, risk measure, level of confidence, etc.) and are a powerful tool for strategic decision-making, for example in capital allocation and pricing.

2009-09-01T12:38:20+00:00September 1st, 2009|

Internal Model Admissibility
Internal Model Admissibility

Internal Model Admissibility

Internal models should reflect the nature, scale and complexity of the underlying businesses; they should be proportional in sophistication to the materiality of the risks they cover. Materiality levels should be determined by stakeholders based on the model's purpose. Practical considerations for models include usability, reliability, timeliness, process effectiveness, systems and cost efficiency. There should be an acceptable tradeoff between accuracy and the various practical constraints.

2017-05-10T20:05:29+00:00May 1st, 2009|

Operational Risk Management
Operational Risk Management

Operational Risk Management

Further, European supervisors considered the causes of failures (and near-failures) of a number of insurers and their analysis showed that the causes were mostly associated with inappropriate risk decisions resulting from underlying internal failures rather than inadequate capitalisation per se.

2009-05-01T07:41:11+00:00May 1st, 2009|

Internal models benchmark study
Internal models benchmark study

Internal models benchmark study

This presentation is based on research (Internal Models Benchmarking Study 2008) carried out on behalf of the Chief Risk Officer Forum by Oliver Wyman.

2009-01-30T08:00:08+00:00January 30th, 2009|

Liquidity Risk Management
Liquidity Risk Management

Liquidity Risk Management

This paper is part of a series of work by the CRO Forum under their Best Risk Management Practices initiative.The paper outlines important principles and considerations that should be part of best risk management practice for the management of liquidity risk within an insurance company. The primary focus of this paper is the management of liquidity risk where the company bears the risk, as opposed to the policyholder.

2008-10-29T08:35:45+00:00October 29th, 2008|

CRO Forum Feedback to Fitch on June 2006 Exposure Drafts
CRO Forum Feedback to Fitch on June 2006 Exposure Drafts

CRO Forum Feedback to Fitch on June 2006 Exposure Drafts

The CRO Forum highly appreciates Fitch's bold and innovative step in the evolution of the assessment of an insurer's capital adequacy. We strongly support Fitch's directional move in explicitly reflecting sound economic principles. The CRO Forum is also very pleased that Fitch strongly supports company internal models for measuring capital adequacy (subject to admissibility requirements) including explicit reflection of diversification and risk mitigation.

2006-07-10T12:28:06+00:00July 10th, 2006|

Financial risk mitigation in insurance
Financial risk mitigation in insurance

Financial risk mitigation in insurance

The Chief Risk Officer Forum is delighted to be presenting the study "Financial Risk Mitigation in Insurance - Time for Change". The Chief Risk Officer Forum comprises risk officers of the major European insurance companies and financial conglomerates, and was formed to address the key relevant risk issues for its industry. It is a technical group focused on developing and promoting industry best practices in risk management.

2006-04-19T12:32:09+00:00April 19th, 2006|

Best practices in risk management

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Internal Model Myths

Internal Model Myths

Internal Model Admissibility

Internal Model Admissibility

Operational Risk Management

Operational Risk Management

Internal models benchmark study

Internal models benchmark study

Liquidity Risk Management

Liquidity Risk Management

CRO Forum Feedback to Fitch on June 2006 Exposure Drafts

CRO Forum Feedback to Fitch on June 2006 Exposure Drafts

Financial risk mitigation in insurance

Financial risk mitigation in insurance