2. ERM is a Big Improvement Over the Internal Control Framework, But …Enterprise Risk Management Framework
3. The ERM Model of 2004 - Does It Go Far Enough? ERM Definition: Enterprise risk management is a process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.
4. Businesses Continue to Fail at a Record Pace Unable to respond to external risks effectively Pressure to achieve financial targets Disruptive forces, such as new products and new competitors, continue to cause business failure.
8. Why Haven’t We Improved? Improvements in Past 25 Years? Professional Risk Management? Internal Auditing? Management Training? Financial Models? Information Technology? Accounting Standards? Global Access to Information? Financial Risk Transfer Tools?
9. Questions for Group With all of the tools at our disposal why have we shown little improvement in our ability to handle the strategic and business risks we face? What are the external risks we face as an insurance industry that can disrupt us? What are some of the best practice tools in place to deal with these risks?