THE INCREASING IMPORTANCE OF ENTERPRISE RISK MANAGEMENT

I recently read an article from the SOA (Society of Actuaries) about the importance of Enterprise Risk Management in today's organizations, and thought it tied in well to many concepts discussed in class.

The article is titled "The Increasing Importance of Enterprise Risk Management" and it basically details how ERM offers a framework for effectively managing uncertainty, responding to risk and harnessing opportunities on a broader scale than ever before, it is of key importance in today's complex and evolving business environment.

It focused a great deal on the role of actuaries in ERM, and this is most interesting to me, as this is the career path I plan to pursue. The article explained that actuaries are uniquely qualified to be enterprise risk managers because of their ability to bring a complex future into focus by applying unique insight to risk and opportunity. Leading actuaries predict more of a role for the profession in ERM because of actuaries' broad understanding of the insurance environment, financial markets and their highly skilled technical abilities.

This article also had links to many other articles on ERM, such "Leveraging ERM Techniques" and "The Evolution of Enterprise Risk Management." These articles further detailed ERM and gave interesting charts and graphs showing the main risk management problems faced by Fortune 1000 companies (as analyzed by actuaries).