Publications

January 10, 2017


This paper provides the perspective of Chief Risk Officers on the future risk management implications of the Big Data and Advanced Analytics paradigm shift underway in the insurance industry. The new paradigm will afford unparalleled opportunities for new product design, risk selection, distribution, and modernizing the customer experience. At the same time, insurers will face a radically different competitive landscape in areas of product and distribution, pressure to change business, operating and expense models, and regulatory interest in the areas of data privacy and consumer protection. The future generation of successful insurance carriers will have embraced Big Data and Advanced Analytics while at the same time have navigated the risk management challenges from such innovation.

August 31, 2016


The purpose of this document is to share a set of sound MRM practices and principles that the members of the North American CRO Council have observed at different companies. The goal is also to leverage, where appropriate, principles being proposed by organizations such as the Federal Reserve, OCC, and industry professional groups. CRO Council members believe that the insurance MRM community can utilize this information to build upon prevailing professional practices.

January 8, 2016

 

The objective of this document is to promote a common approach, understanding, and alignment between Council members on key risks impacting the industry, which will, in turn, provide an anchoring point for future discussions. This includes identifying and defining material risks (or risks that could materialize to adversely impact a company), and discussing how those risks can manifest, specifically to insurance companies, in both the short and long term.

The topic of risk appetite has exploded in recent years, especially since the global financial crisis. Risk appetite frameworks (“RAF”) and risk appetite statements (“RAS”) continue to evolve, and companies are at different stages of implementation. In December 2013, the CRO Council (“Council”) and the CRO Forum (“Forum”) published the paper “Establishing and Embedding Risk Appetite: Practitioners’ View”, to present a variety of sound practices that organizations use to establish and embed effective risk appetite frameworks. Because risk appetite frameworks are not one-size-fits-all, different approaches were discussed, indicating that the size, complexity, and nature of business operations weigh into determining the best approach for an individual company. 
To gain further insight into the diversity of their members’ approaches to risk appetite, the Forum and the Council conducted a joint survey in 2014. The survey was intended to be broad, covering most key areas regarding RAFs. This publication covers the results of this joint survey.

April 10, 2015


The topic of risk appetite has exploded in recent years, especially since the global financial crisis. Risk appetite frameworks (“RAF”) and risk appetite statements (“RAS”) continue to evolve, and companies are at different stages of implementation. In December 2013, the CRO Council (“Council”) and the CRO Forum (“Forum”) published the paper “Establishing and Embedding Risk Appetite: Practitioners’ View”, to present a variety of sound practices that organizations use to establish and embed effective risk appetite frameworks. Because risk appetite frameworks are not one-size-fits-all, different approaches were discussed, indicating that the size, complexity, and nature of business operations weigh into determining the best approach for an individual company.


To gain further insight into the diversity of their members’ approaches to risk appetite, the Forum and the Council conducted a joint survey in 2014. The survey was intended to be broad, covering most key areas regarding RAFs. This publication covers the results of this joint survey.

February 18, 2014


The global financial crisis was marked by several highprofile failings of risk management across the financial services sector and particularly amongst banks. The insurance industry fared relatively better, largely due to structural differences in the underlying business model and the illiquid nature of insurance liabilities, but it was not left entirely unscathed. Weaknesses in governance and/or an unhealthy or unbalanced culture were cited as common contributory factors in many such risk failings. This paper is intended to highlight key considerations that we hope will assist the industry in further strengthening risk governance and culture.

December 20, 2013


Through the perspective gained from surveying current practices and longer term plans of current member companies of the North American CRO Council, this paper strives to promote sound practices related to stress testing, scenario testing, and reverse stress testing, collectively referred to as “scenario analysis.”

December 20, 2013


Risk appetite has been at the forefront of risk management discussion, especially since the global financial crisis. We are therefore pleased to introduce our latest publication “Establishing and Embedding Risk Appetite: Practitioners’ View” which is the first paper jointly authored by the CRO Council and CRO Forum.


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October 3, 2013


The principles presented in this paper have the distinction of being grounded in the actual practices of CROs and their organizations, and are intended to be a useful guide in developing internal risk capital models and in embedding capital models within a business-as-usual process.  They also may be useful to internal or external parties tasked with reviewing a company’s internal capital model.

December 6, 2012

This paper is intended to be a useful guide in applying validation efforts to a particular model as well as helping with the development of an overall company validation process.

December 6, 2012

Emerging risks are more important than ever, given the constantly changing risk landscape, the rapid growth of new technologies, and the changing business environment across the globe.  

This paper describes the Council's views towards sound practices for emerging risk management practices.