Concurrent Sessions

Please scroll to view session descriptions and speaker information.

  • C1: 9th Annual Emerging Risk Survey
  • C2: Adapting ERM Framework to Firm Size, Complexity, and Culture
  • C2-R: Adapting ERM Framework to Firm Size, Complexity, and Culture
  • C3: Addressing Cyber-Security Risks in an ERM Context: Case Study
  • C4: Aligning ERM, Strategic Planning, and Board Priority-Setting Process: Case Study
  • C5: Big Data Applications for Catastrophe Modeling and its Impact on ERM
  • C6: Comparing ERM Practices in Banking and Insurance Sectors
  • C7: Connective Tissue: Linking Enterprise-Level Risk Appetite and Day-to-Day Risk Management
  • C8: Effective Risk Reporting for CROs
  • C8-R: Effective Risk Reporting for CROs
  • C9: Emerging Approach to Developing Risk Scenarios for Extreme Operational Risk
  • C10: Fostering the Future: Sustainable ERM for Sustainable Business
  • C11: IAA Risk Book: Documentation and Development of Emerging Tools and Best Practices
  • C12: Interest Rate Risk: Practical Techniques for Risk Scenario Development
  • C13: Model Risk Management in the Insurance Industry
  • C13: R: Model Risk Management in the Insurance Industry
  • C14: Integrating Operational Risk Management into a broader ERM Program
  • C14: R: Integrating Operational Risk Management into a broader ERM Program
  • C15: Operational Risk: How to Incorporate Industry, Regulatory, and Firm-Specific Data
  • C16: Research Papers
  • C17: Risk Modeling for Insurers: Real-World Assets and Risk-Neutral Liabilities
  • C18: Skills Needed to Become and Remain an Effective CRO
  • C19: Using Economic Capital Models to Manage the Business
  • C20: Using ERM to Manage Interactivity Between Operational Risk, Reserve Risk, and Underwriting Risk
  • C21: Vendor Risk Management: War Stories and Leading Practices

Concurrent Session Descriptions and Speaker Information:

C1: 9th Annual Emerging Risk Survey

Room: Salons H-K

This session will review the 9th annual survey of emerging risks, sharing new information learned and comments from risk practitioners. This survey has produced revealing comments about the current status of ERM and how it has evolved. Cognitive biases and practitioner comments of what parts of ERM work and what doesn’t work can be incorporated into future developments. We also look at advances in the development of dynamic risk monitoring and risk management design which facilitate greater resilience in the face of emerging risk.

Learning Objectives:

  • Follow trends as practitioners recognize emerging risks
  • Better understand the cognitive bias of anchoring as we think across longer time horizons
  • See where your ERM process fits relative to others, and better understand the role of culture in your success
    Moderator/Presenter:
    Max Rudolph, Principal, Rudolph Financial Consulting, LLC
    Presenter:
    Neil Cantle, Principal, Milliman

C2: Adapting ERM Framework to Firm Size, Complexity, and Culture

Room: Salon 1
(This session will not be recorded.)

ERM programs vary given the size and complexity of an organization.  In this session, we contrast the ERM Frameworks from a large multinational insurer and a small/mid-size domestic insurer.  We highlight how ERM is embedded in decision making, the extent of the risk network within the organization and the external/internal pressures that can influence risk priorities.  As well, we demonstrate the challenges of establishing a centralized ERM function within a small/mid-size insurer and provide insights on how to get buy in.

Learning Objectives:

  • Contrast ERM Frameworks between large and small/mid-size insurers.
  • Understand how ERM is integrated within a large multinational insurer.
  • Learn of strategies and priority setting to establish a centralized ERM framework at a small/mid-size insurer.
    Moderator:
    Elaine Lajeunesse, SVP & CRO, Economical Insurance
    Presenters:
    Rishi Kapur, Senior Vice President – Financial Risk, Manulife Financial;
    Michel Fournier, AVP – Head of Risk Management, National Life Group

C2-R: Adapting ERM Framework to Firm Size, Complexity, and Culture

Room: Salons F-G

(This session will not be recorded.)

(This session is repeated on Thursday at 10:00 a.m. See page X for description.)

C3: Addressing Cyber-Security Risks in an ERM Context: Case Study

Room: Salons H-K

This session will discuss cyber-security risk as just one example of a material operational risk, and how an adequate ERM framework can manage it. Discussion will include the board’s role in managing the risk, and the NACD and NAIC principles regarding this risk. We will briefly talk about the cyber environment in the health insurance sector and the potential for cyber risk to be the motivator for health insurers to see real value in ERM. We will also include a discussion of the current cyber insurance market, the use of such insurance to manage the risk, and a case study of how a company used their ERM framework to manage this risk.

Learning Objectives:

  • Understand the fundamentals of managing cyber-security risk as a material operational risk in an ERM framework.
  • Devise measurement and monitoring tools for managing cyber-security risk.
  • Illustrate reporting mechanisms to communicate with management and the board regarding this risk.
    Moderator/Presenter:
    Kevin Madigan, Director, Willis Towers Watson
    Presenter:
    Anthony Dagostino, Executive Vice President, Willis Towers Watson

C4: Aligning ERM, Strategic Planning, and Board Priority-Setting Process: Case Study

Room: Salon 2

True ERM is meant to be across the ‘enterprise’, holistic and proactive and used as a strategic communication tool.  Healthcare tends to be focused on adverse clinical event claims mitigation.  Despite the implementation of many promising (and overlapping) initiatives, healthcare remains at the top of the national concern list.

Non-clinical risks are usually distributed across various portfolios, leading to a divergence of processes and masking the overall understanding of risks to the organization. The literature suggests that ERM used broadly to coordinate an organizational risk program reduces uncertainty and, over time, improves the prospects of success in terms of addressing financial and insurable hazards, as well as guiding strategy, operations and technology, reputation, and regulatory compliance within the organization. It needs to include a combination of stakeholders throughout the strategic planning process, balanced with external review and consultation, and needs to be clearly communicated and translated into the plans of the various units and departments.

Learning Objectives:

  • Why it is imperative to align silos such as clinical and non-clinical risks for organizational effectiveness.
  • Integrate their organization’s ERM, strategic planning, and Board priority processes.
  • How the Canadian healthcare public sector is applying ERM principles to fully manage all risks.

    Moderator:

    Hélène Baril, Senior Manager, Ernst & Young
    Presenter:

    Ella Young, Corporate Director, ERM & Director, Actuarial Analytics, Vancouver Coastal Health

C5: Big Data Applications for Catastrophe Modeling and its Impact on ERM

Room: Salon 1

Big data has made the creation of liability catastrophe models not based on historical insurer’s claims data and emerging risk identification possible. What are the emerging methods of casualty catastrophe modeling?   We will explore non-traditional predictive data sets.  We will also discuss how insurers currently identify and evaluate emerging casualty risks and discuss scalable alternatives. How can big data analytics be applied to peer-reviewed science and other text-based data sources to offer new opportunities to identify, quantify and manage emerging risks. With a comprehensive data-driven approach, emerging risk becomes transformed from a driver of risk avoidance to a vehicle for growth in complex risk underwriting.  The presentation will include examples of emerging risks with estimates of their impact on potential losses. Casualty risks are especially difficult due to the latency period and the potential for clash within portfolios, two of the most important dimensions yet are the least understood.

Learning Objectives:

  • Understand a new approach to identifying and quantifying emerging risks in the liability space (including latent risks, pharma and energy).
  • Understand how liability catastrophe modeling can be applied to grow liability premiums.
  • Understand the prospects for new product development in casualty based on liability catastrophe modeling.
    Moderator/Presenter:
    Robert Reville, President and Chief Executive Officer, Praedicat, Inc.
    Presenters:
    Andrea Scascighini, Head Large Underwriting Desk US, Swiss Re America Holding Corporation;
    Alietia Caughron, Vice President, CNA Insurance Companies

C6: Comparing ERM Practices in Banking and Insurance Sectors

Room: Salon 1

How to navigate through the Looking Glass of Risk Management for Banking and Insurance.

Learning Objectives:

  • Understand the differences and similarities in Insurance & Banking ERM
    Moderator:
    TBD
    Presenter:
    Thomas Wilson, Chief Risk Officer, Allianz SE

C7: Connective Tissue: Linking Enterprise-Level Risk Appetite and Day-to-Day Risk Management

Room: Salon 1

As insurers have embarked on the implementation of ERM programs, they have recognized the need for clarity around the organization’s appetite for taking risks. This presentation will articulate the concepts of the risk appetite framework, defining risk in the context of the mission statement of the company. In addition a link between risk tolerances and risk limits will be provided through the introduction of the risk budget concept. A case study that illustrates how risk tolerances, defined at the enterprise risk level, are connected to risk limits employed for day-to-day local management decisions through a near-real-time risk monitoring framework will be also described.

Learning Objectives:

  • Understand how companies can tie their risk appetite framework to their mission statement
  • Demonstrate approaches for operationalizing the risk tolerances from the enterprise level to the management level
  • Explore how risk appetite can support making decisions on a day-to-day basis.
    Moderator:
    Presenter:

    Manolis Bardis, Senior Consultant, Willis Towers Watson

C8: Effective Risk Reporting for CROs

Room: Salons H-K

(This session is repeated on Thursday at 2:15 p.m.)

A CRO panel will present their views on what makes for effective risk reporting, What reports are most useful for running the business? What are some of the issues that they face in getting metrics and reports produced quickly? What is the current state of risk reporting at their organization and what are the main areas they are investing time and resources into for future enhancement?

Learning Objectives:

  • Be able to produce more effective reports to help with the running of their organization.
  • Understand some of the key issues faced by CROs as far as risk reporting is concerned.
  • Have a view of what CROs are doing to improve their risk reporting capabilities.
    Moderator/Presenter:
    Anthony Dardis, Milliman
    Presenters:
    Neil Cantle, Principal, Milliman; David Raszeja, Chief Ethics and Risk Officer, Penn Mutual Life Insurance Co

C8-R: Effective Risk Reporting for CROs

Room: Salon 2

(This session is repeated on Thursday at 10:00 a.m.)

C9: Emerging Approach to Developing Risk Scenarios for Extreme Operational Risk Events: Case Study

Room: Salon 1

"Hurricanes, thousand year storms, massive data breaches, high-profile executive fraud — the business press is filled with such grim news on an almost daily basis. Once dismissed as “acts of God”, increasingly, risk management professionals are applying a new approach, called Structured Scenario Analysis (SSA), to better understanding the likelihood of such tail events and their potential impacts. Although relatively new, SSA has several important advantages over the traditional scenario analysis.

Drawing upon the experience of TIAA-CREF, the session will describe how the company uses SSA to build compelling narratives around extreme operational loss events and to quantify them. The session will cover the following topics:

  • Overview of operational risk scenario analysis
  • Benefits of SSA over traditional scenario analysis
  • Why TIAA-CREF chose SSA
  • Approach to implementing SSA
  • Lessons learned
  • Integration of SSA with TIAA-CREF’s operational risk management program.

Learning Objectives:

  • Understand the differences between the traditional scenario analysis and structured scenario analysis
  • Be able to use structured scenario analysis in estimating extreme operational loss events
  • Benefit from the implementation experience of TIAA-CREF in developing a structured scenario analysis program
    Moderator:

    Presenters:
    Andrew Kramer, TIAA-CREF;
    Karthik Ramakrishnan, Senior Manager, EY

C10: Fostering the Future: Sustainable ERM for Sustainable Business

Room: Salon 2

Corporate sustainability, the ability to create long-term business value, can be measured in terms of the economic, environmental, and social performance of a corporate entity. This session examines the sustainability imperative and global meta-trends from the key stakeholders’ perspectives, and summarizes the business case for sustainability as well as insurance industry best practices. We will discuss perspectives, frameworks and tools to facilitate the critical transition for insurers to integrate sustainability with their ERM program.

Learning Objectives:

  • Understand sustainability, global trends, its benefits and relevance to insurance
  • Learn about sustainability risk
  • Understand Sustainable ERM (SERM), characteristics and framework
    Moderator:
    Stanislav Eratt, Senior Consultant, Willis Towers Watson
    Presenters:
    Fan Yang, AIG;
    Sean Keenan, AIG

C11: IAA Risk Book: Documentation and Development of Emerging Tools and Best Practices

Room: Salon 5

The current chair of the International Actuarial Association’s Insurance Regulation Committee will present and discuss the drafted chapters of the IAA’s Risk Book including: Actuarial Function, Model Governance, ORSA and Professional Standards.  The discussion will also focus on Operational Risk, Catastrophe Risk, Distribution Risk, Reinsurance & Groups.  Finally the session will close with a look at future chapters of the Risk Book which will address Framework Processes such as Resolution of Insolvencies, Capital, Stress Testing, ALM and Financial Statements.  This interactive session will allow attendees to give constructive feedback on the Risk Book Project as to what else could or should be included.

Learning Objectives:

  • Gain an understanding of the current best practices around managing insurer risks.
  • Understand the development of and recent trends concerning emerging tools.
  • Enhance their ability to effectively manage pooled risks in a sustainable manner.
    Moderator:

    Presenters:
    Dave Sandberg, VP & Corporate Actuary, Allianzlife;
    Stuart Wason, Senior Director, Office of the Superintendent of Financial Institutions

C12: Interest Rate Risk: Practical Techniques for Risk Scenario Development

Room: Salon 5

Nominal interest rates are at a tipping point. What’s next? An upward spike in rates? Low (or negative) interest rates? Whichever way interest rates shift, this session can offer insights to savers of all kinds, but especially life insurers. Disadvantageous interest rate risk scenarios are possibly the financial industry’s greatest challenge. Arming your organization with a more resilient response can provide a key competitive advantage. This session builds off research that describes how practitioners can apply risk scenario planning to their current risk profile, using practical (and non-costly, non-resource-intensive) tools. The research upon which this session builds can be found at https://www.soa.org/Research/Research-Projects/Life-Insurance/research-2015-rising-interest-rate.aspx

Learning Objectives:

  • recognize the systemic risk that interest rates pose.
  • develop specific scenario sets that stress an entity’s unique set of risks.
  • proactively consider the shortcoming in current tools like stochastic interest rate scenarios and how this can be overcome.
    Moderator:

    Presenter:
    Matt Clark, Deloitte;
    Max Rudolph, Principal, Rudolph Financial Consulting, LLC

C13: Model Risk Management in the Insurance Industry

Room: Salon 5

(This session is repeated on Friday at 9:45 a.m.)

Model Risk Management is evolving beyond simple model governance and validation.   This presentation surveys advanced practices.  Topics covered include model risk scoring, uses of model risl scores, integration of data quality and model quality assessments, model system identification and analysis, and capital buffers for model risk.

Learning Objectives:

  • Understand the importance of model risk management
  • Understand the challenges to defining and measuring model risk
  • Learn about strategy & tactics for designing and implementing a model risk management framework
    Moderator:
    Kathryn Hyland, Senior Vice President, Swiss Re
    Presenter:
    Sean Keenan, AIG

C13-R: Model Risk Management in the Insurance Industry

Room: Salon 2
(This session is repeated on Thursday at 10:00 a.m. See page X for description.)

C14: Integrating Operational Risk Management into a broader ERM Program

Room: Salon 5

(This session is repeated on Friday at 12:15 p.m.)

A panel of CRO executives will discuss how to integrate Operational Risk into a broader ERM Program:

  • What processes need to be put into place to ensure operational risk is managed effectively, that all aspects of the business are properly covered, and that there is widespread buy-in across the organization to the operational risk management program?
  • Aspects of operational risk often enter into the domain of other areas of risk – market, demographic and credit. How does an insurer properly manage those areas of cross-over, and ensure that operational risks associated with those other risk areas are properly captured? How can a company ensure the operational risk team is an active participant in the other risk teams.
  • Operational risk data – What’s available publicly, and how to use internal and external data in tandem? The panel will discuss the value in capturing operational loss data and near misses – it is not only good to identify severe operational loss exposure, but also to be able to be more efficient by avoiding the smaller potential problems.
  • The panel will also discuss the work of Operational Risk Insurance Consortium (ORIC) International in collecting an industry database of operational risk claims as well as developing key operational risk scenarios that can help insurers better manage their operational risk exposure. How could the work of ORIC be helpful for US insurers in managing operational risk?

Learning Objectives:

  • Better analyze their operational risk exposures.
  • Understand the key issues facing insurance CROs in monitoring and managing operational risks.
  • Understand where the industry generally is going in developing data and resources that can help insurers better manage operational risks.
    Moderator:
    TBD
    Presenters:
    Randi Woods Webber, Vice President and CRO, Principal International, Inc.;
    Ken Radigan, Special Advisor, ORIC International

C14-R: Integrating Operational Risk Management into a broader ERM Program

Room: Salon 2

A panel of CRO executives will discuss how to integrate Operational Risk into a broader ERM Program:
•             What processes need to be put into place to ensure operational risk is managed effectively, that all aspects of the business are properly covered, and that there is widespread buy-in across the organization to the operational risk management program?
•             Aspects of operational risk often enter into the domain of other areas of risk – market, demographic and credit. How does an insurer properly manage those areas of cross-over, and ensure that operational risks associated with those other risk areas are properly captured? How can a company ensure the operational risk team is an active participant in the other risk teams.
•             Operational risk data – What’s available publicly, and how to use internal and external data in tandem? The panel will discuss the value in capturing operational loss data and near misses – it is not only good to identify severe operational loss exposure, but also to be able to be more efficient by avoiding the smaller potential problems.
•             The panel will also discuss the work of Operational Risk Insurance Consortium (ORIC) International in collecting an industry database of operational risk claims as well as developing key operational risk scenarios that can help insurers better manage their operational risk exposure. How could the work of ORIC be helpful for US insurers in managing operational risk?

Learning Objectives:

  • Better analyze their operational risk exposures.
  • Understand the key issues facing insurance CROs in monitoring and managing operational risks.
  • Understand where the industry generally is going in developing data and resources that can help insurers better manage operational risks.
    Moderator:
    TBD
    Presenters:
    Randi Woods Webber, Vice President and CRO, Principal International, Inc.;
    Ken Radigan, Special Advisor, ORIC International

C15: Operational Risk: How to Incorporate Industry, Regulatory, and Firm-Specific Data

Room: Salon 6

In addressing operational risk, a gap exists in the industry regarding approach.  In short, the most commonly deployed metrics, in practice, provide considerably different answers (in most cases) to the question of, “How much capital should I hold for OpsRisk?”  The standard U.S. insurance company statutory capital structure, Risk Based Capital (“RBC”), uses C-4 as the basis of operational risk capital, and is generally accepted as significantly understating the risk.  The standard for U.S. Banks, Basel III, allows for a range of approaches, all of which are generally more robust than C-4.  Finally, in Europe, the standard for insurers is Solvency II, which allows for a either a formulaic approach or a full-blown firm model.  While neither is required for U.S. insurers, both Basel III and Solvency II have OpsRisk requirements which seem to highlight the shortcomings of RBC and point to the need for a more comprehensive approach.

Learning Objectives:

  • Gain an understanding of what is meant specifically by Operational Risk.
  • Understand the importance of quantifying OpsRisk and it’s impact on economic capital
  • Be able to fully articulate solutions for OpsRisk management.
    Moderator:
    Presenters:
    Brian O’Neill, Senior Manager, Deloitte;
    Eric Clapprood, Deloitte Consulting LLP

C16: Research Papers

Room: Salons F-G

The Optimal Timing of Risk Management, by Kailan Shang – Awarded the Joint CAS/CIA/SOA Risk Management Section Award for Practical Risk Management Applications.

Enterprise Risk-Reward Optimization: Two Critical Approaches, by Damon Levine – Awarded The Actuarial Foundation’s ERM Research Excellence Award in Memory of Hubert Mueller for Best Overall Paper.

    Moderator:
    James Ramenda, Sr. Vice President, Enterprise Risk, SS & C Technologies, Inc.
    Presenters:
    Kailan Shang, Co-Founder, Swin Solutions Inc.;
    Damon Levine, Vice President, Enterprise Risk Management, Assurant

C17: Risk Modeling for Insurers: Real-World Assets and Risk-Neutral Liabilities

Room: Salon 6

Insurance asset risk is often assessed using risk-neutral generators which start with economic scenario generators designed for pricing hedge products. This is a sound way of pricing, and gives consistent risk loading to a wide range of products. However for insurance risk management the distribution of asset value changes when holding a fixed portfolio is often the key issue. For this, real world probabilities are needed. Financial industry ESGs may not adapt well to a real world environment – lognormal distributions for example can work well for pricing but are too skewed for actual risk analysis.  The best real-world models require numerical methods, but fairly good generators, beating most in the market, can be built in Excel.

This session will look at scenario generators for interest rates, credit spreads, inflation, and equities. Performance of some generators will be compared to historical data.  Then probability transforms that are applied to insurance pricing and capital allocation will be reviewed.

Learning Objectives:

  • Evaluate output of economic scenario generators by comparison to data.
  • Know where to look to design their own basic generators.
  • Apply probability transforms to price excess layers and risk-adjust returns.
    Moderator:
    Presenter:
    Gary Venter

C18: Skills Needed to Become and Remain an Effective CRO

Room: Salon 5

The actuarial/technical career path is a great start, but if you want to be a CRO, there’s a lot more to learn. This session will help identify the gaps in traditional actuarial training for someone wanting to end up in the CRO chair.
Learning Objectives:

  • identify additional topics to emphasize if they want to be eligible to be a future CRO
  • improve communication.
  • improve business accumen.
    Moderator:
    David Schraub, Staff Fellow, Society of Actuaries
    Presenters:
    Elaine Lajeunesse, SVP & CRO, Economical Insurance;
    Randi Woods Webber, Vice President and CRO, Principal International, Inc.

C19: Using Economic Capital Models to Manage the Business

Room: Salon 6

Insurance companies manage their business to multiple metrics, of which economic capital (EC) may be one. However, in general terms across the industry there is a widely held view that EC when calculated may not be getting as widely used as it might be to genuinely play a major role in the management of the business. What are the barriers to successful implementation and use of an EC program? What are the best practice companies doing to ensure EC is widely bought into and used across their organizations? This panel will comprise senior management from a variety of major insurers across the industry, and will focus on practical aspects. Reference will also be made to usage of modeling techniques (such as proxy modeling) to help speed up EC runs and enable more rapid and advanced analytics, as well as more process orientated aspects of EC such as embedding EC culture throughout the organization and getting Board and line-of-business buy-in to EC.

Learning Objectives:

  • Understand the issues facing the industry in using EC effectively, and understand how best practice companies are overcoming these issues.
  • Takeaway some useful action points to help better use EC in their companies.
  • Understand how EC can be integrated with other risk metrics to help better manage an insurance business.
    Moderator:
    Anna Berezovskaya, Principal & Consulting Actuary, Milliman
    Presenter:
    Ivan Parker, Jackson National Life

C20: Using ERM to Manage Interactivity Between Operational Risk, Reserve Risk, and Underwriting Risk

Room: Salon 6

“Reserve risk” is a complicated concept, meaning different things to different stakeholders. Capital modelers focus on the tail of the liability distributions to identify capital charges and assess capital adequacy. Corporate actuarial and finance departments focus on the variability around the mean of the liabilities to determine an appropriate accounting entry – and its impact on surplus. Pricing actuaries and underwriters focus on the risk that estimates of future experience may be misestimated due to a misunderstanding of similar recent experience. Claims departments focus on legal or operational risks associated with claims handling procedures.

This session will illustrate how risk appetite and tolerances frameworks, and associated risk monitoring tools, can be used to manage the various components of “reserve risk” through highlighting the interactions of operational risk, reserve risk, and underwriting risk.

Learning Objectives:

  • Devise a risk appetite and tolerances framework, and associated risk monitoring tools, that can be used to manage reserve risk through its linkages with underwriting risk and operational risk.
  • Recognize the important distinctions between reserve risk in the tail (capital adequacy), reserve risk as regards variability around the expected value of liabilities (reserving as an accounting entry), the time component of reserve risk and how this impacts underwriting risk.
  • Understand how different insurance company functions view reserve risk
    Moderator:

    Presenters:
    Kevin Madigan, Director, Willis Towers Watson;
    Mario DiCaro, VP, Capital Modeling & Analytics, Tokio Marine HCC

C21: Vendor Risk Management: War Stories and Leading Practices

Room: Salon 6

Risk presented by suppliers and vendors can be broader and deeper than every before. With the Internet of Everything and a trend towards outsourcing, risk presented by vendors, and their vendors (4th party) is a conversation being held in Boardrooms of every industry. The regulators, rating agencies, shareholders and clients are wanting more visibility. This session will share best practices as well as examples about what could go wrong.

Learning Objective:

  • Identify potential sources of vendor risk and understand the importance of the discussion
    Moderator/Presenter:
    Randi Woods Webber,
    Vice President and CRO, Principal International, Inc.
    Presenter:
    Scott Margolis, Director, PricewaterhouseCoopers LLP