1. Canadian Institute of Actuaries L’Institut canadien des actuaires
2006 Seminar for the Appointed Actuary
Colloque pour l’actuaire désigné 2006

2. Enterprise Risk Management
So what’s so new about that?
Gordon Dunning
President & CEO
Assuris

3. Enterprise Risk Management
So what’s so new?
Haven’t Actuaries always done
risk management?

4. Enterprise Risk Management
Risk and the Actuary
Report of the Actuary
Dynamic Capital Adequacy Testing
Minimum Continuing Capital and Surplus Requirements

5. Enterprise Risk Management
…and what about the Accountants and Auditors?
Haven’t they always done
risk management?

6. Enterprise Risk Management
Risk and the Accountants and Auditors
Financial statement note disclosure
Management discussion and analysis
Audit opinions, Generally Accepted Auditing Standards and Risk Based auditing

7. Enterprise Risk Management
…and what about the Regulators?
Haven’t they always encouraged
risk management?

8. Enterprise Risk Management
Risk and the Regulators
Standards of sound business practice
Risk framework
Risk based Supervision

9. Enterprise Risk Management
So we already have a good system.
There is no need for an additional one.
Right?
Well maybe…….
……is the current system as good as it should be?

10. Enterprise Risk Management
Some observations on the current system
Appointed actuaries report
Lack of standardization
DCAT
Financial statements
Thin disclosure of policyholder liabilities
MCCSR
Mechanical rather then principle based

11. Enterprise Risk Management
Some observations on the current system
There is not always a consistent picture of the companies risk profile when you read all the reports together.
Like seeking clues in CSI rather than reading a story.

12. Enterprise Risk Management
Poor reporting? or
Poor understanding?

13. Enterprise Risk Management
Poor reporting
Not fundamentally important
Easy to fix

14. Enterprise Risk Management
Poor understanding
Fundamentally important
Hard to fix

15. Enterprise Risk Management
The ERM fix
ERM thinking should
Integrate risk and operational management
Broaden thinking to cover risks comprehensively
Harmonize and deepen reporting

16. Enterprise Risk Management
Current Improvements to the system
Appointed actuaries report
Standardized summary
DCAT
Some common scenarios
Financial statements
Auditors greater involvement
MCCSR
TBS approach

17. Enterprise Risk Management
New ERM reports?
To the Board?
To regulators?
Improve our existing reports?

18. Enterprise Risk Management
Enterprise risk reporting
Integrated risk reporting
AA Report
DCAT
F/S
TBS Capital

19. Chart and graphic page