Just about every insurance organization on the planet has a variety of siloed systems and methodologies in place to help cope with decades of increasing regulations and other risk-related challenges. These systems, typically built to address specific requirements of particular regulations, have resulted in the creation of multiple layers of overlapping and burdensome processes.Executive SummaryBy developing a simple Unified ERM Framework, supported by advanced analytics, insurers can adapt to new regulations and risks more easily, according to FTI Consulting’s Jim Wrynn and Jim Toole. The overarching goal is to bring data flows and regulation requirements into alignment with corporate strategies, objectives and policies.
As regulatory and risk-related challenges continue, organizations must find a better way to satisfy their risk and compliance objectives.
Based on extensive experience in helping clients cope with these burdens, the authors believe it may be time to consider getting back to basics, taking the “KISS” (Keep It Simple Stupid) approach to risk management.
Accordingly, we propose creating a “Unified Enterprise Risk Management Framework” as the basis for simplifying the management and compliance of regulations and risks.