Gather a group of 20, 30 or even 50 P/C insurance executives in a room and ask, “Who here wants their company to miss achieving its strategic goals?” or “Who wants to always have to put out fires day-to-day?” How many hands do you think would go up?
Executive Summary
P/C insurance executives who view ERM as "exposure risk management"—limited to managing their books of business and buying reinsurance—are missing the full picture of what enterprise risk management is all about.Here, Carol Williams, a risk management and strategy consultant for P/C insurers, explains the richer practice of "objective-centric ERM" and lists fundamental practices for managing the risks that can derail mission-critical objectives—practices that should be consistent across companies regardless of their size.
It’s safe to say none.
Everyone wants to be successful; there’s no denying that statement.
However, with today’s world marred by what seems to be extreme levels of volatility, uncertainty, complexity and ambiguity (VUCA), running a carrier smoothly day-to-day, much less achieving long-term strategic goals, is more challenging than ever.
Tools are available for helping carriers overcome or otherwise navigate this challenging landscape. One of those tools is enterprise risk management (ERM). Unfortunately, few P/C carriers (companies in general, to be honest) harness these tools effectively.
