The application of Enterprise Risk Management (ERM) principles have increasingly been adopted by business organizations in the US and globally. For insurance companies, ERM principles are often coupled with economic capital models that more closely integrate risk and capital management. Simultaneously, the role of the actuary has expanded so that today many actuaries are seeking designations to provide service related to both ERM and economic capital modeling.
Over the last few years, the CAS has adopted these principles to itself as an organization as well. Much of this work has been conducted by the CAS Risk Management Committee (RMC). Examples of the principles adopted include risk identification, risk mitigation, and investment and capital modeling.
This session will present the work of the RMC, and illustrate both the application of ERM principles, and the role of actuaries practicing in ERM and capital modeling. Concepts presented will include the approach to identifying key risks facing the CAS and the actuarial profession, the development and adoption of risk mitigation strategies, as well as modeling to evaluate the CAS surplus position and investment strategy.