Page 76 - RISK Management IC86 Ebook
P. 76
Risk Management
It is important to note that the types of risk and focus vary by
industry, and may encompass related corporate governance
and accounting practices.
Rating agency views
n The rating agencies have also increased their surveillance on
the topic of enterprise risk management.
The ratings of insurance companies have always included the
view of the company's ability to manage its risks. In addition,
since the early 1990s, the industry was one of the first to
implement concept of the risk-adjusted view of capital and
earnings.
The main difference is that companies, through new
technology and advancements in the area of enterprise risk
management, are becoming more capable of answering
questions about frequency and severity of both known and
unknown risks affecting the enterprise.
n Standard & Poor's have presented in various forums some
key questions related to enterprise risk management that
insurance companies need to be prepared to answer to rating
agencies. Among them are:
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