The 2012 ERM Symposium offers three pre-program seminars the day before the regular Symposium program to allow for an in-depth and hands-on exploration of relevant topics. (Additional registration fee applies).
Seminars will be offered on the topics of:
- ERM Implementation
- Risk Architecture: Alignment of Business Strategy and Objectives and Risk Appetite and Limits
- Risk and Sustainability
Seminar I: ERM Implementation
This seminar is designed for individuals involved with performing ERM functions in their organization—whether for-profit corporations, non-profit organizations, or government entities—or those with oversight over those functions. This includes:
- Chief risk officers or those functioning in that capacity, or their staff
- Those conducting qualitative risk assessments
- Those building models for quantifying key risks
- Heads of Internal Audit
- Chairs of board risk committees or audit committees
- Heads of external relations or those communicating with analysts and rating agencies
This seminar is a practical, hands-on program designed to leave participants with tangible skills that can be applied immediately to help successfully implement ERM at their organization. This program uses a stimulating and dynamic combination of lectures, individual exercises, small group exercises, large group exercises, and case studies to provide participants with the skill set to understand the following concepts regarding ERM framework, risk identification, risk quantification:
- Use a consistent definition of risk and ERM enterprise-wide.
- Evaluate the robustness of an ERM program against the 10 key ERM criteria.
- Understand shortcomings of traditional ERM programs, including three core challenges.
- Implement an advanced yet practical ERM framework addressing traditional difficulties.
- Employ the five keys to successful risk identification.
- Develop a risk categorization and definition (RCD) tool.
- Conduct qualitative risk assessment surveys.
- Perform baseline company valuation.
- Develop individual risk scenarios, using the FMEA technique.
- Quantify strategic and operational risks.
Note: Attendees are asked to bring their own laptop to this seminar. The registration fee for this seminar is higher than the other two seminars due to the costs of providing materials to the attendees, including a seminar binder containing valuable educational materials. Furthermore, the seminar is taught in its entirety by a globally recognized ERM thought leader, researcher, and author, with experience in a variety of industry sectors. Sim Segal has been recognized by the SOA as a Pioneer of the Profession for his ERM work, particularly creating a new market for actuaries in the nonfinancial services sector. Segal also serves as an adjunct professor at Columbia Business School, where he teaches an MBA/EMBA course on ERM. This seminar provides a unique opportunity to spend an entire day being taught by one of the global ERM leaders of the actuarial profession.
Sim Segal, President, SimErgy Consulting LLC
ERM Implementation Seminar participants may also purchase a copy of Sim Segal’s book, Corporate Value of Enterprise Risk Management.
Corporate Value of Enterprise Risk Management (Wiley, March 2011)
While enterprise risk management (ERM) programs have a great deal of potential, traditional ERM approaches often struggle to generate sufficient buy-in from internal stakeholders. Corporate Value of Enterprise Risk Management responds to this challenge with a value-based ERM approach that transforms ERM into a strategic management process that enhances strategic planning and other business decision making.
Demystifying the complex and wide-ranging topic of ERM, this practical guide is informed by the author’s twenty-five years of professional experience in this arena and introduces 10 key ERM criteria as a foundational element to evaluate the robustness of any ERM program.
Filled with case studies illustrating key elements of the value-based ERM approach, this insightful book reveals:
- How to generate sufficient buy-in for your ERM program
- Ten key ERM criteria for evaluating the robustness of an ERM program
- Techniques to avoid the five common mistakes in risk identification
- Secrets to quantifying all types of risks, whether strategic, operational, or financial
- How to clearly define risk appetite and quantify it for use in the risk governance process
- How to integrate ERM information into decision-making processes
- How to use ERM to correct a critical flaw in balanced scorecards
- How to apply ERM to nonprofit organizations, government bodies, and individual
- The failures of bank risk management practices that contributed to the financial crisis.
Disastrous events both man-made and natural, as well as pressures from shareholders, bondholders, directors, rating agencies, and regulators have raised management’s awareness of the need for an integrated approach to managing risk. With an important chapter evaluating bank risk management practices in light of the financial crisis that began in the United States in 2007, Corporate Value of Enterprise Risk Management provides timely direction for the risks your organization faces.
The purchase price is $75. If you order the book by March 23, you can pick up your book at the Seminar.
Seminar II: Risk Architecture: Alignment of Business Strategy and Objectives and Risk Appetite and Limits
This seminar will address the challenges faced by banks and insurance companies in building an integrated risk management function to support the efficient use of capital and management of risk. Industry practitioners and regulatory supervisors will provide insights and guidance that can help in developing a coherent risk measurement and management framework, which is aligned with business strategy and investor return objectives. The interactive sessions and a panel discussion will cover leading practices in implementing top-down and bottom-up integration of risk and capital management. The sessions will cover:
- Alignment of risk with business strategies and objectives.
- Need for a capital capacity, appetite, and limit (CAL) framework.
- Comprehensive definition of risk appetite.
- Coherent risk and capital measures.
- Evolution from capital attribution to capital allocation and optimization.
- Harmonized return, risk, and capital allocation.
- Emerging risks and risks interconnection.
- Effective governance and senior management oversight.
Alexander Shipilov, Vice President, Risk & Capital Audit, TD Bank Group
Dr. Colin Lawrence, Director, Prudential Risk Division, Financial Services Authority (U.K.)
Bogie Ozdemir, Vice President, Economic Capital, Sun Life Financial Group
Leon Bloom, Partner, Enterprise Risk Services, Deloitte & Touche LLP
Neil Cantle, Milliman, Inc.
Alexander Shipilov, Vice President, Risk & Capital Audit, TD Bank Group
Ellen Cooper, Global Head of Insurance Strategy, Goldman Sachs Asset Management
Seong-Weon Park, Vice President, Insurance Strategy, Goldman Sachs Asset Management
Seminar III: Risk and Sustainability
In today’s world, leaders in every sector (business, government, and non-governmental organizations) must be able to identify and manage economic, environmental, societal, geopolitical, and technological risks, many of which threaten the strategic competitiveness of businesses. Many of today’s risks stem from unsustainable growth in resource consumption, and the ability of diseases, economic failures, and political unrest to spread quickly around the world through increasing global interconnections. Some are due to climate changes that affect everyone. Others are created by the legitimate changes in businesses practices, such as cutting costs through sourcing of materials and labor from developing countries, and increasing reliance on technology for operational performance.
Major segments of the world’s business communities are developing and encouraging more sustainable systems to help manage risks that encompass business functional areas, including human resources, marketing, finance, accounting, real estate, manufacturing, operations, and corporate governance. Businesses are beginning to develop strategies beyond compliance and mere sustainability and into areas which will have a positive impact on system-wide risks. Examples include strategies for viable alternate energy and affordable transportation not based on fossil fuel, as well as making a positive environmental impact through carbon reduction, developing treatments for poverty-induced diseases, alleviating food and water shortages, responding to disasters, and bringing products and services to ignored markets in developing countries (i.e., microfinance, microinsurance, and crop insurance ).
This seminar will give participants a template for identifying risks and will leave them with a methodology for analyzing external risks, including global risks, and will show them how these articulate with the ERM framework that insurers use. In-depth discussion on three risks will be made. The participants will:
- Vote on the top risks.
- Prepare Ishikawa diagrams on root causes.
- Draw risk maps showing the relationships among various risks .
- Report on how these external risks can be articulated into their own ERM framework.
In groups, risks will be identified and relationships will be graphically portrayed, along with development of risk maps and identification of interrelationships. Specific examples of how business and government practices that are based on short-term unsustainable growth lead to risk will be discussed.
Potential in-depth discussion on these topics include:
- Unsustainable government and business practices creating global economic contagions.
- Financial regulation.
- Climate change.
- Global pandemics
- Unsustainable infusion of capital (e.g., mortgage crisis)
James R. Jones, Director, Katie Insurance School, Illinois State University
Kevin Ahlgrim, Associate Professor, Dept. of Finance, Insurance, & Law, Illinois State University
Krzysztof M. Ostaszewski, Director and Professor of Mathematics, Actuarial Program, Illinois State University