Governance & Oversight

communicating risks

2 Keys to Effectively Communicating Risks to the Board

It’s getting to be that time of the year when many organizations have major board meetings to finalize plans and budgets for the next year. Considering this year’s unprecedented volatility, many Boards will naturally want to discuss risks facing the enterprise. While the topic of Boards and reporting risks have been peppered in past blog…
Read More
changes in risk owner

Avoid the Scramble: Proactively Plan for Changes in Risk Owner

Wouldn’t it be nice if a risk simply went away when the risk owner left the organization or changed roles? Okay, now wake up from that dream…this doesn’t happen in real life. As a previous article on assigning a risk owner explains, the ERM unit does not actually manage risks. Instead individual(s) who are close…
Read More
ERM & audit

Understanding the Changing Dynamics between ERM & Audit

As is often repeated here and elsewhere, the world is changing at an incredibly fast pace. Even without this year’s coronavirus pandemic, this pace will only accelerate in the years and decades ahead as automation, AI, machine learning, and other technologies continue to develop. ERM and audit are not immune to this change… Internal auditors…
Read More

Preparing for Regulatory Oversight of Advanced Modeling and AI

In today’s competitive and tumultuous environment, companies are beginning to rely on advanced modeling and artificial intelligence tools to drive decisions. With increased use of Monte Carlo simulation models and other tech-based tools, regulators are beginning to ask more questions about models and the data that goes into them. An article prepared by McKinsey &…
Read More

Why A Strong Governance Foundation is Vital to Successful ERM

When first speaking to an organization about ERM, executives know they have a problem, but they usually don’t know what it is, much less how to fix it. All they know is ERM is a possible solution. But before jumping in, I often find trouble spots that need to be addressed first. If they are…
Read More
enterprise list management

How Regulators Perpetuate Enterprise “List” Management

As a former regulator of property & casualty insurance companies in Florida, I can appreciate the importance of some regulation of certain companies. After all, you don’t want to find out after a hurricane that your insurance carrier is insolvent. Risk management related regulations like ORSA for insurance companies, Basel III for banks, and some…
Read More
Chief Risk Officer

Chief Risk Officer: An Increasingly Vital Role in Effective Risk Oversight

The 2019 State of Risk Oversight report from NC State recently came out with some interesting results about the current state of risk management leadership in organizations. The report breaks down results into four different industry-categories – large organizations, public companies, financial institutions, and not-for-profit. Over the last five years, nonprofits have seen the biggest…
Read More

The Board’s Role in Risk Oversight and Why It’s Important

A majority of articles here on the blog focus on the process of ERM for anyone involved in their organization’s strategy-setting and day-to-day operations. While learning about processes like risk identification, assessment, and reporting is important, there are other risk-related activities in the organization that are equally important, namely the oversight of risk by the…
Read More
credit ratings ERM

A 5-Minute Primer on Factoring ERM into Credit Ratings for Insurance Companies

An article we published in mid-2017 gave an introduction to how credit rating agencies are factoring ERM into their ratings. For most organizations, the evaluation of ERM is simply folded into the overall review of the firm’s management and governance. Additional research and other resources (see here and here) shared with me since the original…
Read More
ERM maturity assessments

ERM Maturity Assessments: Are we assessing the right thing?

At the end of my first year of managing the ERM program for a large Florida property insurance company, we had a big risk consulting firm come in and assess the maturity of the program. ERM maturity assessments measure where your ERM program sits on a scale (typically 1 to 5 or words that label…
Read More
Menu