Management of insured risks



Insurance is a way of transferring your risk to somebody else (an insurance company) who will compensate you should the risk event occur, in return of a premium. One of the factors affecting the premium is the loss history both in terms of how often the event has occurred and how large the loss has been in financial terms. Premiums are often reduced by offering of no claims discount. That means that if you have not had any claims for a certain number of years you will get a discount on your premium.
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Risk Reporting



An important element in Enterprise Risk Management is risk reporting. Throughout the risk management process there are continuous feedback loops such as within the risk assessment, whilst risks are being monitored and when an internal audit takes place. The aim with risk management is to ensure compliance with policies, laws and regulations; to provide assurance to the board that significant risks have been identified and are being managed within set risk appetite; and to provide details to inform decisions. Read More…

Enterprise Risk Management - Service Your Business As You Would Your Car


Enterprise Risk Management (ERM) makes business sense! Not many organisations who are actively practicing ERM would argue with that. However, it tends to be predominantly organisations which are required by regulation or listing rules that actually implement ERM. Why is that? It tends to be budgetary constraints as well as a lack of understanding of what ERM actually means for them that stops businesses from making investment into ERM.

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Enterprise Risk Management Adds Value



Enterprise Risk Management is not only for organisations such as large public listed corporations where it is mandatory. Successful small and medium size organisations rely on good organisation and understanding of the environment in which they operate. Read More…

Solvency II Now Business As Usual, Time To Reap The Benefits!



For European insurers Solvency II has been effective since 1 January 2016 and is now business as usual! Or is it?

Insurance companies in Europe invested millions of Euros in ensuring readiness and compliance with the European wide regulation Solvency II. The process started several years ago with the purpose of harmonisation across the EU to improve consumer protection, modernise supervision, deepen the market integration and increase the international competitiveness of European insurers and reinsurers. Under Solvency II, insurers are required to take account of all types of risk to which they are exposed and to manage those risks effectively. Read More…

Cyber Security Risk Is Not An IT Risk



Cyber- information- computer security, this highly technical subject sounds as if it should be a risk that fall within the IT department, but there are clear evidence that the responsibility sit elsewhere in the organisation. Read More…

Cyber Risk Insurance A Way to Transfer Your Cyber Risk


In a recent research report from the Information Security Forum Threat Horizon 2018: Lost in a maze of uncertainty one of the top threats for organisations for 2018 is lack of availability of cyber risk insurance. The report predicts that large data breaches will drive many insurers our of the cyber insurance market and that will disrupt this method for organisations to transfer cyber risk. Read More…

Audit of Risk Management Function



The aim with Enterprise Risk Management is to have a holistic aggregated view of the risks in the organisation. Although any risk governance framework is unique to each business it is generally expected that enterprise risk management operates as a three lines of defence model. Read More…

Emerging Risk – Pre-empt And Discover Opportunities



Emerging risk is really risk which is unknown and will materialise in the future. If that is the case is it really possible to identify such risks as we are not fortunate enough to have a crystal ball? Read More…

Embedding Risk Management Through Training 



During the Solvency II implementation phase and up to the launch 1st January 2016 European Insurers spent millions of pounds on risk management, making sure that the minimum requirements were achieved. There is no doubt that the tone is set at the top, that the board embraces risk management.
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2016 ORSA Due Soon, Board of Directors’ Responsibility



In our work with insurance companies we have found that there are two types of directors on the Board; the first type are terrified about their responsibilities that fall under ORSA; and the second type are the directors not aware that they should be terrified about their ORSA responsibilities!
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Cyber security can be a very daunting subject and many small businesses tend to turn a blind eye, until it’s too late. With almost daily headlines of security breaches of large organisations, it is easy to steer towards a belief that it is not going to happen to you. There is a lot to do and it is better to do something rather than nothing, but where to start?
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The concept of risk management is still a relatively new and over the last decade it has become part of requirements for listed companies in the UK who are obliged to comply with the listing rules. In the US there are similar requirements for listed companies. Within banking and insurance, risk management forms an integral part of European regulation. Read More…

To an innovator or product developer compliance, law and risk management can be seen as business prevention mechanisms. This is a dangerous attitude that can cost the organisation in the long run.
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There are almost daily news headlines of yet another data security breach, often in well known and large organisations. If large organisations with big IT resource spend are having unwelcome visitors into their network, it is likely that small businesses have completely undetected breaches. What if it happens to you? Have you taken the necessary preventative measures or set up a contingency plan?
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Risk appetite is the level of “How much risk your organisation is willing to take”. Risk appetite is subjective and is often very different from the organisation’s risk capacity, which is: “How much risk your organisation is able to take”. If an organisation has a willingness to take little risk it is risk-averse and if it is willing to take more risk it is risk aggressive. Needless to say, the higher the risk, the higher the return and more hurtful is the loss if things go wrong. Therefore risk appetite is very much in the heart of how a company conducts its business. Read More…