Inside Information

Best's ReviewVol. 110 Nbr. 3, July 2009

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Summary


In the current economic downturn, enterprise risk management (ERM) is helping carriers plan, organize and control activities to minimize the effects of risk on their capital and earnings. And while ERM means different things to different companies, one thing remains constant: Information technology is a key component in creating an effective ERM framework. More than 90% of respondents to a Society of Actuaries' recent survey said their senior leadership now embraces ERM. More than half of respondents ranked financial risk as the most severe concern for their companies or clients. Today, ERM solutions commonly used by carriers range from dashboards to analytics, data modeling, data view and business intelligence tools that sit on top of transactional systems and/or data warehouses and help manage, monitor and report data, said Brian Parker, principal, enterprise risk services, Deloitte & Touche LLP. Risk and actuarial technologies are a fundamental driver of business units' core functions, such as product pricing, strategic planning, asset-liability management and financial accounting.

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Inside Information

In the current economic downturn, enterprise risk management is helping carriers plan, organize and control activities to minimize the effects of risk on their capital and earnings.

And while ERM means different things to different companies, one thing remains constant: Information technology is a key component in creating an effective ERM framework.

"ERM is increasingly becoming a technology-intensive field," said David Dullaway, principal and leader of global professional services firm Towers Perrin's global economic capital initiative. "For years, lack of technology in the industry is ...

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