WIN Magazine - Fall 2017 - 33

This approach ensures the company
has considered all risks in its selection process and also communicates
to all employees that the board of directors and senior management are committed to establishing a risk-aware culture.
We can outline an inventory of potential risks that exist at many wholesale
insurance brokers and managing general agents. This listing, which includes
financing, legal, operational and strategic issues, serves as a tool to ensure that

KEY RISK FACTORS
FOR INSURANCE
WHOLESALERS
* Financing - Exposure to liquidity
events, creditors (including retail
brokers, insureds, insurance
companies and premium finance
companies) and investment portfolio risks due to changes in interest rates and equity prices.
* Legal/Regulatory - Exposure from
licensing (MGA, agency and producer and surplus lines), surplus
lines tax remittance and compliance with diligent search/export
listing regulations.
* Operational - Exposure to loss
of key personnel, employee/
producer retention, business
interruption, fraud, financial
controls/financial reporting,
data capture and system security, disaster recovery and business continuity, violation of
underwriting authority, maintaining acceptable service levels,
claim handling, carrier appetite
change (due to lack of underwriting profitability, change in carrier leadership, channel conflict,
investor pressure on carrier or
change in relationships) and
concentration risk (retail brokers
and carriers).
* Strategic - Exposure to industry
issues such as economic downturn, industry competition, reputation risk, availability of capital
and perpetuation risk.

the company's key risk-identification
process has surfaced all applicable risks.
In selecting the eight to 12 key risks,
the company should consider those
risks that could have a more significant impact on its operating performance and current and prospective
capital levels.
For each key risk, the key risk owner
should define the risk, determine frequency and severity estimates for the
risk, establish quantifiable risk tolerance

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IDENTIFY, MEASURE,
MANAGE AND
MITIGATE KEY RISKS
For a wholesale insurance broker or
managing general agent, there will
typically be eight to 12 key risks that
the company will manage in a highly
transparent, systematic manner as part
of its ERM framework.
A company should take a bottom-up
approach in determining these key risks
by meeting with all employees in each
functional department and reviewing
their operating practices and activities.
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F A L L 2017
| 33
06/09/17
11:31 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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