Effective enterprise risk management moves up the agenda
The complexity and speed of change of emerging risk exposures are placing greater attention on the effectiveness of enterprise risk management (ERM) strategies across all industry sectors, suggests a newly-released US report.
The report, entitled ‘Communicating the Value of Enterprise Risk Management’, has been jointly developed by the US Risk Management Society (RIMS) and the Property Casualty Insurers Association of America (PCI).
Intended for risk professionals from industry sectors beyond just insurance, the report examines the insurer’s experience of the own risk and solvency assessment, aka ORSA, along with the benefits of the ORSA process and outcomes to the organisation. It also explores the risk professional’s perspective on the objectives and benefits of completing an ORSA and its potential value to the overall business.
“Risk management is cyclical in that practitioners must continuously review their programmes and their internal and external environments to ensure effectiveness, sustainability and growth,” said RIMS’ chief executive officer (CEO) Mary Roth.
“The committees have done a remarkable job exploring the ORSA, its forward-looking, ongoing nature, as well as its flexibility that maximises its value to risk professionals in a broad range of industries.”
The PCI-RIMS contributing authors utilized their recent experience in response to a new insurance regulatory reporting requirements to describe how insurers have benefitted from completing this ORSA and how the corresponding ORSA summary report can be used by companies in any industry as an effective method for communicating the value of ERM.
The paper is available for download here.