Swiss Insurance Club Chancen- und Risiko- Management im ... - PwC
Swiss Insurance Club Chancen- und Risiko- Management im ... - PwC
Swiss Insurance Club Chancen- und Risiko- Management im ... - PwC
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<strong>Swiss</strong> <strong>Insurance</strong> <strong>Club</strong><br />
<strong>Chancen</strong>- <strong>und</strong> <strong>Risiko</strong>-<br />
<strong>Management</strong><br />
<strong>im</strong> Versicherungsunternehmen<br />
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<strong>Swiss</strong> <strong>Insurance</strong> <strong>Club</strong><br />
Programm<br />
� Begrüssung <strong>und</strong> Einleitung<br />
Martin Frei, Partner, PricewaterhouseCoopers, Basel<br />
� Finanzaufsicht für Finanzkonglomerate in der Schweiz<br />
Peter Streit, B<strong>und</strong>esamt für Privatversicherungen, Bern<br />
� <strong>Management</strong> der Unternehmens-Risiken in der<br />
Versicherungswirtschaft (Vortrag in Englisch)<br />
Chris Stooke, Partner, PricewaterhouseCoopers, Zürich<br />
� Hilfsmittel für unternehmensweites <strong>Risiko</strong>-<strong>Management</strong><br />
Daniel Küng, Partner, PricewaterhouseCoopers, Zürich<br />
� Anschliessend: Fragen / Diskussion<br />
� Apéro<br />
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Finanzaufsicht für<br />
Finanzkonglomerate in<br />
der Schweiz<br />
Peter Streit<br />
B<strong>und</strong>esamt für Privatversicherungen<br />
September 2001
Risk <strong>Management</strong> for<br />
<strong>Insurance</strong> Companies<br />
Chris Stooke<br />
September 2001
Risk <strong>Management</strong> for <strong>Insurance</strong><br />
Companies<br />
� A constantly changing risk environment<br />
� Trends driving the need to <strong>im</strong>prove risk management<br />
� A model for risk reporting and management (Daniel Küng)<br />
� Building enterprise risk management (Daniel Küng)<br />
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<strong>Insurance</strong> is a Risk Business<br />
Regulatory<br />
changes<br />
Threats to<br />
reputation<br />
Cost<br />
pressures<br />
Falling<br />
equity markets<br />
Legacy<br />
systems<br />
Diverse<br />
Operations<br />
Litigation and<br />
changing legal<br />
framework<br />
Acquisitions<br />
and disposals<br />
Credit/market/<br />
operational risk<br />
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Trend 1 – Convergence, consolidation,<br />
business lifecycles, E-biz<br />
� Convergence is gathering pace and is easier in cyberspace<br />
� E Biz transformation and its effects<br />
- Rapid entrance of new players<br />
- Transformation of the value chain and distribution networks<br />
� Consolidation of back office factories consumes resources and<br />
generates risk<br />
� Company lifecycles are becoming shorter (38 years and falling)<br />
� Company managers have less experience of executing strategies<br />
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Trend 2 – the quest to quantify operational<br />
risk, value for money and the role of the<br />
centre<br />
� Assessing risk is not enough – it does not yield enough value<br />
� Recognition of the short fall of self assessment techniques in<br />
isolation<br />
� Linkage with other initiatives in the organisation<br />
� Companies now using multiple measures in assessment<br />
� Greater use of shareholder value metrics in risk measurement<br />
� Greater <strong>und</strong>erstanding of the leadership role of the centre in risk<br />
management<br />
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Trend 3 – Regulatory drivers for risk<br />
management and managements frameworks<br />
Global Trends<br />
Convergence<br />
Technology<br />
Consolidation<br />
Capital Markets<br />
Globalization<br />
Regulatory Response<br />
Emergence of pan-FS regulators in a<br />
number of territories<br />
Reinvention of regulation for ecommerce<br />
and cross-border sales<br />
Developing focus on financial<br />
conglomerates<br />
Pressure for common standards &<br />
increased disclosure<br />
Establishment of new international<br />
regulatory forums and bodies<br />
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Trend 4 – Risk management reporting<br />
and behaviours<br />
� Process alone does not yield results<br />
� Insurers still have a way to go in reporting sophistication<br />
- Greater non finance reporting<br />
- More control effectiveness reporting<br />
- More use of lead indicators<br />
� Linkage of leadership style to the way risk is managed<br />
� Companies increasingly dealing with the consequences of<br />
empowerment<br />
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Changing Environment<br />
Impact of e-business and technology<br />
Processes & systems<br />
Organisation and Resources<br />
...the ... the need to manage risks associated with major change... change...<br />
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Commercial <strong>im</strong>peratives<br />
Achieve desired<br />
risk / reward<br />
Reduce<br />
inefficiencies<br />
Protect and<br />
enhance<br />
shareholder value<br />
Manage costs<br />
effectively<br />
Maintain /<br />
enhance<br />
credit rating<br />
...Risk ... Risk <strong>Management</strong> capabilities must be commercially focused<br />
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Need for an overall framework<br />
Lack of clarity on ...<br />
Required Framework<br />
Risk Definitions<br />
Together with issues over...<br />
Organisational<br />
responsibilities<br />
Efficient controls<br />
Identification<br />
and assessment<br />
process<br />
A concern that gaps may exist in the current environment...<br />
environment...<br />
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Building Enterprise Risk<br />
<strong>Management</strong><br />
Project Risk<br />
mgmt<br />
Framework<br />
Project<br />
management<br />
Reputation<br />
management<br />
Corporate<br />
Risk<br />
Framework<br />
Business<br />
planning<br />
Project<br />
portfolio<br />
process<br />
Stakeholder<br />
management<br />
Risk Map,<br />
policy and<br />
language<br />
Risk<br />
management<br />
process<br />
Risk<br />
organisation<br />
and structure<br />
Ethics and<br />
social<br />
responsibility<br />
Corporate<br />
comm’s<br />
Risk<br />
reporting and<br />
design<br />
Risk<br />
management<br />
style<br />
Statement of<br />
ethics<br />
Code of<br />
conduct<br />
Policy<br />
Business<br />
Policy<br />
Accountability<br />
and<br />
responsibility<br />
Standards and<br />
monitoring<br />
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Hilfsmittel für<br />
unternehmensweites<br />
<strong>Risiko</strong>-<strong>Management</strong><br />
Daniel Küng<br />
September 2001
Agenda<br />
� What is Risk?<br />
� Business Risk <strong>Management</strong> Framework<br />
� Integration in an Information <strong>Management</strong> Environment<br />
� Examples: Tools in Action<br />
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Risk is any issue which could <strong>im</strong>pact<br />
your ability to meet your objectives<br />
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Your ability to meet your objectives<br />
is supported by Risk <strong>Management</strong><br />
For Risk <strong>Management</strong> you need:<br />
• A so<strong>und</strong> Business Risk <strong>Management</strong><br />
Framework<br />
• Risk <strong>Management</strong> Tools & clearly<br />
defined and measurable „Key<br />
Performance Indicators“<br />
• Access to sources of information ?<br />
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ORCA is the conceptional Business<br />
Risk <strong>Management</strong> Approach<br />
Objectives<br />
Risk<br />
Controls<br />
Alignment<br />
Risk<br />
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Building an enterprise-wide Risk<br />
Architecture<br />
• Promotes individual empowerment<br />
• Creates an integrated environment<br />
linking people, process, strategy<br />
and leadership<br />
• Inventories and prioritises gaps in<br />
risk management<br />
• Highlights inefficiencies<br />
• Sends a powerful message<br />
to the investing community<br />
Processes<br />
Department<br />
Business<br />
Enterprise<br />
Strategy<br />
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Unit<br />
ORC ORC<br />
ORC ORC<br />
ORC ORC<br />
ORC ORC<br />
ORC ORC<br />
ORC ORC<br />
Mission<br />
Alignment<br />
ORC ORC<br />
ORC ORC<br />
Alignment Alignment Alignment<br />
ORC ORC<br />
ORC ORC
Your ability to meet your objectives<br />
is supported by Risk <strong>Management</strong><br />
For Risk <strong>Management</strong> you need:<br />
• A so<strong>und</strong> Business Risk <strong>Management</strong><br />
Framework<br />
• Risk <strong>Management</strong> Tools & clearly<br />
defined and measurable „Key<br />
Performance Indicators“<br />
• Access to sources of information<br />
?<br />
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RiskPRISM enables and enforces<br />
ORCA throughout the organization<br />
� Risk assessment and reporting tool, based on ORCA<br />
� Provides an effective means of developing and assessing your<br />
risk profile and evaluating where risk exists and how it is being<br />
managed<br />
� Tool that act as a valuable early warning system to help<br />
highlight gaps, <strong>im</strong>balances and potential efficiencies in risk<br />
management and control systems<br />
� Web enabled: can be <strong>im</strong>plemented on the intranet<br />
� Multi-user access: enables the capture from, and the<br />
dissemination of risk information to, employees at every level<br />
and at every location<br />
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Individual Risks are consolidated<br />
according to the defined organization<br />
structure – Drill downs are made easy<br />
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Your ability to meet your objectives<br />
is supported by Risk <strong>Management</strong><br />
For Risk <strong>Management</strong> you need:<br />
• A so<strong>und</strong> Business Risk <strong>Management</strong><br />
Framework<br />
• Risk <strong>Management</strong> Tools & clearly<br />
defined and measurable „Key<br />
Performance Indicators“<br />
• Access to sources of information<br />
?<br />
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Integration of RiskPRISM in an<br />
Information <strong>Management</strong> Environment:<br />
BizWorks (Computer Associates)<br />
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Combining RiskPRISM, BizWorks and<br />
ORCA allows integration of risk and<br />
operational management<br />
KPIs/<br />
KRIs<br />
Exception<br />
Rules<br />
(BizWorks)<br />
RiskPRiSM<br />
Reporting<br />
(BizWorks)<br />
Resources Preparation Production Delivery/Sales<br />
•Amount<br />
•T<strong>im</strong>e<br />
•Quality<br />
•Quality<br />
•Expiration Dates •Output<br />
•Logistic<br />
•Accounts Receivable<br />
•Temperature<br />
Risk 1<br />
Risk 2<br />
Risk 3<br />
Risks<br />
•Temperature<br />
•Pressure<br />
•R.P.M<br />
•T<strong>im</strong>e<br />
•Shaping<br />
Probability Impact<br />
•Sales Statistic<br />
•Accounts Payable<br />
•Package<br />
•Turnover<br />
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X<br />
X<br />
X
RiskPRISM / BizWorks<br />
Example other insurance: Target Loss Ratio at 65 %<br />
KPI<br />
Exception<br />
Rules<br />
(BizWorks)<br />
RiskPRiSM<br />
Reporting<br />
(BizWorks)<br />
Resources Preparation Production Delivery/Sales<br />
Average Loss Ratio > 70%<br />
Not profitable insurance portfolio<br />
Loss of premiums due to pricing adjustments<br />
Increased Cash requirements (money market costs)<br />
Exposure: previous 350K new 750K<br />
Flag: previous Green new Red<br />
73% of the premiums<br />
are required to cover<br />
the cla<strong>im</strong>s<br />
Probability Impact<br />
P = 0.1<br />
p=0,7 P = 0,3<br />
2000K/month<br />
4000K/month<br />
500K/month<br />
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!
Integrated Business Risk <strong>Management</strong> is<br />
a pathfinder on the road to success<br />
Market<br />
Position<br />
Your company<br />
today<br />
Your company‘s<br />
future position<br />
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t
Fragen?
Apéro<br />
Zum Wohl !<br />
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