Conning: The Importance of Risk Attribution
Posted: 2 May 2014
The financial crisis and increased regulatory scrutiny in an ever more complex global environment has heightened the demand for insurers to understand, measure, and manage risks across the entirety of their organizations. More and more insurers have adopted Enterprise Risk Management (ERM) as a comprehensive framework for assessing internal and external threats to their business. Risk attribution is a critical component of ERM – it determines the overall impact of various sources of risk across all functions of an organization. While regulatory requirements are driving much of the effort, risk attribution is more than a compliance exercise. It is an important decision-making tool for senior leadership to manage their companies effectively
This paper begins with a background on risk attribution.
Risk attribution is a rigorous approach to determining the overall impact of various sources of risk across all functions of an organization