WIN Magazine - Fall 2017 - 32

* Reduce earnings and capital volatility
* Improve operating efficiency and
effectiveness
* Encourage intelligent risk-taking
throughout the company

Most privately held wholesale insurance
brokers and managing general agents
have a small board of directors usually comprised of seven or fewer board
members. Therefore, it is not practical to
establish a separate board risk committee to oversee and provide risk management governance. However, most boards
have finance or audit committees, and
it would be a natural extension for this
committee to assume the responsibility
for oversight of the ERM function.

ESTABLISH A
RISK-AWARE CULTURE
Establishing a strong risk-management
culture starts at the top of any organization with the tone created by the board
of directors and senior management.

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| WIN MAG A ZINE

Using the name "Finance and Risk
Committee" and ensuring the committee's charter reflects its ERM oversight and governance responsibilities
will communicate a strong risk-management culture throughout the company.
Other ERM roles that need to be created in order to establish a risk-aware
culture include an ERM committee comprised of senior management, a chief
risk officer, and key risk owners.
All of these roles can be created without adding positions to the organization.
Other concepts that must be considered in establishing a risk-aware
culture include:
* Description of the goals and objectives
of the ERM framework
* Risk profile, which is a narrative
description of the parameters for
executing the company's business strategies. A risk profile covers subjects such as diversification
(geographic, carrier and retail broker distribution), program character istics, product offer ings,
willingness to assume underwriting
authority, cash management and
investments, liquidity, capital management, operations and regulatory
compliance issues.
* Risk appetite statements, which
represent the boundary levels of
uncertainty a company is willing
to assume given the corresponding reward associated with the risk.
Risk appetite statements generally
correspond with the company's
risk profile.
* Risk tolerance levels (RTL), which
are company-wide financial metrics
that establish thresholds for levels
of risk that the company is willing
to accept in order to accomplish its
strategic objectives. RTL's generally
fall into three categories: capital,
balance sheet/liquidity strength and
operating performance.
* ERM reporting and communication
processes, which are an outline of the
monthly, quarterly and annual ERM
communications and processes that
the company will undertake to ensure
employees through the board of directors are kept abreast of the company's
ERM framework.

12/14/17 11:32 PM


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Table of Contents for the Digital Edition of WIN Magazine - Fall 2017

Do Hurricanes Have a Silver Lining?
Underwriting Marijuana
The Cyber Insurance Conundrum
Writing Data Security Into Law
Gauging Risk, Reaping Reward
Simply Seamless
Moving to the Cloud: 3 Migration Strategy Models and the 6 R’s.
In the WIN-NER’s Circle
WIN Magazine - Fall 2017 - Intro
WIN Magazine - Fall 2017 - bellyband1
WIN Magazine - Fall 2017 - bellyband2
WIN Magazine - Fall 2017 - cover1
WIN Magazine - Fall 2017 - cover2
WIN Magazine - Fall 2017 - 3
WIN Magazine - Fall 2017 - 4
WIN Magazine - Fall 2017 - 5
WIN Magazine - Fall 2017 - 6
WIN Magazine - Fall 2017 - 7
WIN Magazine - Fall 2017 - 8
WIN Magazine - Fall 2017 - 9
WIN Magazine - Fall 2017 - 10
WIN Magazine - Fall 2017 - 11
WIN Magazine - Fall 2017 - Do Hurricanes Have a Silver Lining?
WIN Magazine - Fall 2017 - 13
WIN Magazine - Fall 2017 - 14
WIN Magazine - Fall 2017 - 15
WIN Magazine - Fall 2017 - 16
WIN Magazine - Fall 2017 - Underwriting Marijuana
WIN Magazine - Fall 2017 - 18
WIN Magazine - Fall 2017 - 19
WIN Magazine - Fall 2017 - 20
WIN Magazine - Fall 2017 - 21
WIN Magazine - Fall 2017 - 22
WIN Magazine - Fall 2017 - 23
WIN Magazine - Fall 2017 - The Cyber Insurance Conundrum
WIN Magazine - Fall 2017 - 25
WIN Magazine - Fall 2017 - Writing Data Security Into Law
WIN Magazine - Fall 2017 - 27
WIN Magazine - Fall 2017 - 28
WIN Magazine - Fall 2017 - 29
WIN Magazine - Fall 2017 - 30
WIN Magazine - Fall 2017 - Gauging Risk, Reaping Reward
WIN Magazine - Fall 2017 - 32
WIN Magazine - Fall 2017 - 33
WIN Magazine - Fall 2017 - 34
WIN Magazine - Fall 2017 - 35
WIN Magazine - Fall 2017 - Simply Seamless
WIN Magazine - Fall 2017 - 37
WIN Magazine - Fall 2017 - Moving to the Cloud: 3 Migration Strategy Models and the 6 R’s.
WIN Magazine - Fall 2017 - 39
WIN Magazine - Fall 2017 - In the WIN-NER’s Circle
WIN Magazine - Fall 2017 - 41
WIN Magazine - Fall 2017 - 42
WIN Magazine - Fall 2017 - cover3
WIN Magazine - Fall 2017 - cover4
WIN Magazine - Fall 2017 - outsert1
WIN Magazine - Fall 2017 - outsert2
WIN Magazine - Fall 2017 - outsert3
WIN Magazine - Fall 2017 - outsert4
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