Workshop 4
What Board Members Need to Know about ERM
By Invitation Only
This program has been approved by the National Association of Corporate Directors (NACD) Corporate Directors Institute to offer 4 Certificate of Director Education (CDE) credits.
When something goes badly wrong within an organization, the effectiveness of the Board of Directors is called into question. Enterprise Risk Management (ERM) involves the identification, measurement and management of risks across an organization. This process, if done properly, provides board members with the information they need to understand the risks an organization faces so they can be perform their oversight duties effectively.
ERM is a process in which the board is intensely involved. Board members are now expected to oversee the ERM process within a company, to regularly review voluminous and highly technical ERM reports, and to establish a corporate governance structure that facilitates effective ERM. Boards need to assign the right people to handle the day to day responsibilities of ERM, implement a compensation system that provides incentives for effective actions in this area, ask the right questions at board meetings, and recognize early in the process when something is starting to go wrong. These are vital responsibilities. However, as the field of ERM has developed over the last decade, many board members have struggled with their role in this process.
This workshop is designed to help board members learn about ERM, understand what role boards need to fulfill in this area, and gain the skills necessary so they can enhance the ERM process within their organizations. The goal of this workshop is to educate attendees so they can become more effective at helping their organizations successfully manage risk across the enterprise.
This workshop will consist of three sessions on the afternoon of April 14, 2008.
- The first session will be a presentation on ERM and corporate governance by a recognized expert in the field. This session will cover ERM terminology, best practices, past failures, and new developments in ERM.
- The second session will be a point-counterpoint type of presentation by several Chief Risk Officers and board members. They will address their respective roles in the ERM process and present examples of what worked and what did not work for them in this process.
Guidance will be provided on the key questions board members should ask about ERM, and what answers they should expect if the process is working properly. - The third session will be a free flowing discussion involving all attendees on ERM practices and problems. The moderator of this session will foster active participation so attendees can discuss situations they have faced and get answers to their questions about ERM.
Workshop Faculty:
- Jean-Pierre Berliet established Berliet Associates, LLC to help insurance companies make more money and increase their value. He is a senior business development executive with expertise in business generation, capital and risk management and strategic planning, across the insurance, healthcare and banking industries. He has worked extensively for leading insurance companies in the U.S. and in Europe. Mr. Berliet was most recently a Senior Manager in the Risk and Capital Management Practice of the Insurance and Actuarial Advisory Services Practice at Ernst & Young.
- W. James MacGinnitie, non-executive chairman of RenaissanceRe Holdings Ltd. Jim is also the audit chair of two other insurers, Norcal Mutual and Trustmark Mutual. He is a retired partner of Ernst & Young, former CFO of CNA Financial, and retired managing principal of Tillinghast. He has served as president of the American Academy of Actuaries, the Casualty Actuarial Society, and the Society of Actuaries.
- David R. Koenig, founding partner of Ductilibility, LLC, a private research network and advisory firm serving Boards, Chief Risk Officers and other senior executives. David is the past Chair, Board of Directors of the Professional Risk Managers’ International Association (PRMIA). He served as the Executive Director of PRMIA and the President of the PRMIA Institute until September of 2007. Prior to this role, Mr. Koenig was the Head of Market and Institutional Credit Risk Management for U.S. Bancorp Piper Jaffray.
- Todd Fonner, Chief Risk Officer, RenaissanceRe
Workshop attendees are encouraged to attend the ERM Symposium that follows on April 15 and 16. Several especially appropriate sessions will be scheduled for the morning of April 15 to accommodate individuals who are unable to remain for the entire Symposium.