Since the business of insurance is risk management, it's not surprising that the majority of insurers have standards of practice for monitoring, managing and mitigating risk. What's more surprising, is that enterprise risk management (ERM)-identifying, prioritizing, quantifying, mitigating and financing risks from all sources across an enterprise-seems to be catching on fairly quickly.That's a conclusion of a recent survey by New York-based Ernst & Young's Insurance and Actuarial Advisory Services (IAAS), which found that 67% of insurers have a formal ERM committee. Of that 67%, 33% formed their ERM committee within the last three years. Another 21% of respondents say their organizations are considering establishing such a committee.
What's more, more than half of the current operational risk and compliance/regulatory committees have been formed in the last three years, and chief risk officers (CRO) now have more input in overall company decisions, whereas CROs didn't even exist a few years ago.
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