Risk Management Task Force - ERM Working Group Minutes

Risk Management
Task Force

Enterprise Risk Management (ERM) Minutes

Enterprise Risk Management (ERM) – Working Group Minutes
September 30, 2005
10:00 a.m. Central Time

Participants: Jenny Bowen (Leader), Renee Cassell, Charlene Collins, Dave Ingram, Suzanne Luck, Jim Ramenda, Zenaida Samaniego, Suzanne Wille, Julie Young (SOA)

Future Direction of the Working Group
Jenny had spoken to Fred Tavan regarding how this group can fit in with what the RM section is doing. She reported on their considerations and conclusions, and the working group then refined these ideas and established an action plan.

Considerations
The working group would like to take the Specialty Guide to the next level, especially in the areas of more technical detail and more practical guidance. However, generally we have exhausted our resources in terms of practical experience as well as time to do in-depth research. In order to take the Specialty Guide to the next level, we should rely on outside professional researchers. Fred will be working on getting appropriate SOA funds to support this type of work.

Members of the Risk Management Section Council have discussed the desirability of creating a book using as starting point the best of our ERM Specialty Guide and the Final Report of the CAS Advisory Committee on ERM.

Pursuing a merger of this working group with the CAS Risk Management group does not really make sense now that the CAS has already merged with the SOA Risk Management Section. The CAS RM group was involved in many research activities, so its members can now join forces with SOA Section members to create or enhance specific research task forces. If any of the CAS members of the combined RM Section are interested in the activities of this working group, they can (and several already are) be members of this group. Likewise, any member of this working group can also participate in other research groups within the RM Section.

Conclusion
The ERM working group will transform itself from a group that performs research and creates reports on the results, to a group that assists the RM Section in the following ways:

This group can come up with ideas for research that is needed and give them to Fred. We can also submit ideas for other things (besides research) that the RM Section could or should do. These ideas would come from our own and others’ experience with respect to help that currently is not available to solve real-world needs.

We can help the RM Section when there is work that needs to be done to explore general ideas or categories of ideas and then crystallize the results and prepare them for discussion with others. This would include preparing requests for proposals from outside professional resesarchers. Fred has already identified two documents that he would like for us to use as sources for recommendations.

We will have a conference call once a month, during which we will discuss ideas that members submit; agree on what is worth pursuing; and assign members to draft short, concise proposals which will be distributed to the group for comments. The end-products of our efforts will be recommendations to the RM Section Council.

Our Two Projects for the Immediate Future

PROPOSAL FOR THE NEXT GENERATION OF THE ERM SPECIALTY GUIDE

Members will review our ERM Specialty Guide and the Final Report of the CAS Advisory Committee on ERM. Our web page contains links to both of these documents.

Members will use our ERM Specialty Guide as a starting point and make lists of

What should be added to our Specialty Guide from the CAS document
What pieces of our Specialty Guide should be replaced by pieces of the CAS document
What is still missing after considering what the two documents have to offer, e.g.,
- in-depth technical meat, and
- more specific, practical guidance.

Members will consider the backgrounds of people who might read this document; what should they get out of it and what should they do with it?

ACTION ITEM
Each member will submit ideas to Jenny by November 7th.

ACTION ITEM
Jenny will merge submissions in time for members to review the results for discussion at the December ERM Working Group conference call.

GENERATE REQUESTS FOR PROPOSALS FROM DOCUMENTS FRED SENT

ACTION ITEM
Jenny will e-mail to the ERM listserve the two documents that Fred provided: 1) European CRO work on aggregation, and 2) CRO work on economic capital and aggregation

ACTION ITEM
Members will review these documents and bring to the next conference call their resulting ideas for research projects.

ACTION ITEM
Jenny will tell Fred what we are doing.

Next Call
The next call will take place on Friday, November 4th, at 10 a.m. Central Time. This call is expected to last for approximately one hour.