Henry Essert

Chief risk officers need to be able to accommodate two opposing views: the traditional approach, plus some important new tools.

Here are three key developments that insurers should incorporate into their evolution on enterprise risk management (ERM).

In response, insurers should take full advantage of stress testing, a valuable but underused risk management tool.

A major survey finds that less than 20% more effort would yield 80% more value.

The developing International Capital Standard will require close monitoring by globally active insurers.

Thinking on model risk should undergo the same sort of shift that enterprise risk management has seen in recent years.

International capital standards (ICS) are advancing, to protect insurers in the next financial crisis, but raise numerous ticklish issues.

The chief risk officer has special challenges because the very nature of the function is changing.