NICHOLAS ACTUARIAL SOLUTIONS

RISK MANAGEMENT TERMS

Enterprise risk management (ERM) is the discipline by which an organization in any industry assesses, controls, exploits, finances and monitors risk from all sources for the purposes of increasing the organization’s short and long term value to its stakeholders. [Source: Casualty Actuarial Society (CAS) Overview of Enterprise Risk Management]


It is a process, affected by an entity’s board of directors, management and other personnel, applied in a 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 goals. [Source: Society of Actuaries (SOA) Enterprise Risk Management Specialty Guide]


To find out more about risk management, click here


Strategic Risk relates to the achievement of an organisation's overall strategic business plans and objectives. [Source: Institute and Faculty of Actuaries (IFoA) Enterprise Risk Management Specialist Principles (SP9) Core Reading]


Strategic Risks are risks from damage to reputation, competition, demographic trends, technological innovation, capital availability and regulatory trends. [Source: Society of Actuaries (SOA) Enterprise Risk Management Specialty Guide]


To find out more about risk management, click here