Page 87 - RISK Management IC86 Ebook

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2. Strategic goals
3. Shareholder value
4. Transparency of management (reduction of agency costs)
5. Decision-making
6. Policyholder as a stakeholder

Enterprise risk management process

n Risk control - The primary objective of Risk Control is to
maintain the risks that have been retained by the enterprise at
levels that are consistent with company risk appetites and
company plans. It is most effective if applied universally
throughout the organization, but can still be very useful if
applied separately to divisions or business units of an
enterprise.

n Strategic risk management - Strategic Risk Management
is the process of reflecting risk and risk capital in the strategic
choices that a company makes. It usually has as its objective
the optimization of risk adjusted results for the organization.
That is accomplished by choosing the strategic alternatives
that have the best return for the level of risk that is associated
with them.

n Catastrophic risk management - It is the process of
envisioning and preparing for extreme events that could

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