/


ERM Concepts [13]

Go to: Summary | Previous | Next   
Bullet points include: ERM should give an enterprise-wide risk picture, including. Risks, risk concentrations and risk diversifications. But having a full picture can be very costly and complex to achieve. Often involves major multi-year change programmes and IT spend. Proponents argue that gains in reduced losses and reduced volatility more than outweigh these costs. Examples from Lam (2003) include: Large P&C insurer saved $40m in costs or 13% of annual reinsurance premium. Top money centre bank that focused on ERM out-performed S&P 500 banks by 58% in stock price performance

NAVIGATION LINKS
Contents | Prev | Next | ERM Lecture Series


Desktop view | Switch to Mobile