insurance practitioners’ association istanbul conference
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Insurance Practitioners’ Association Istanbul Conference. 30 th September – 1 st October 2010. Transportation Presentation. Lessons from Implementing an ERM Programme. Date. Speaker - Ian Canham . No single approach to ERM implementation. Process must have Business focus - PowerPoint PPT PresentationTRANSCRIPT
Lockton Companies International Limited. Authorised and regulated by the Financial Services Authority. A Lloyd’s Broker.
Insurance Practitioners’ AssociationIstanbul Conference30th September – 1st October 2010
Transportation Presentation
Date
Lessons from Implementing an ERM Programme
Speaker - Ian Canham
3
No single approach to ERM implementation
Process must have Business focus Add to existing business process Cultural fit to organisation
4
Business Focus
Must be aligned to Commercial business not an academic undertaking
Communication must be simple to understand and allow action Benefit must be seen by individual managers, who must
implement outcomes Owned by management facilitated by Risk Manager
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Additive to Current Process
Utilise current management information not new system Language and measurement must be same and delivered in
same way as other management reports ie financial, safety, operational
Output must be the basis for risk management decisions across the group - must be a tool
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Must Fit Culturally
If centralised organisation must be the same Must flex with the organisation to create required behaviours This is a continual improvement process/give up small victories
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Tools
Risk workshop Risk radar Reporting
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Ideas for Risk Workshop
Intro and war stories Outline of strategic objectives Risk categories and definitions – agree framework for the future Risk appetite – agree high level tolerance matrix Risk identification and assessment – group and
regional/business Risk treatment - Controls – Acceptance – Insurance Ownership, reporting framework, role of the audit committee Role of risk review from specialists – e.g. internal audit, legal,
compliance, HS&E etc
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Risk Maps - EPS example
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What not to do
Off the shelf process Forcing process on the business Demanding exact measurement
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ERM and Insurance
ERM outcome should be basis for the insurance process Insurers will support a well managed company and this provides
management and risk judgement
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Why Risk Managers should implement ERM
“Inability to be on the same wavelength as senior management
is a common mistake, Risk managers careers often come to an
end due to communication not competence problems”