Risk Dynamics publishes White Paper on Insurance Model Validation Challenges
Risk Dynamics, Belgium, is one of the ICMIF Supporting Members and the organisation specialises in risk management. They have been very active in supporting recent ICMIF events including the recent Solvency II Solutions Seminar in which Managing Partner Dr Dominique Bourrat gave a presentation on the Risk Management Maturity Assessment Survey which had been carried out with ICMIF members.
In recent months Risk Dynamics have published a number of White Papers on the topic of risk management for insurance providers; many of which will be of interest to ICMIF member organisations. These reports can be downloaded quickly and easily from the Risk Dynamics web site.
The most recent white paper summarizes the outcome of a roundtable event, the Risk Dynamics Insurance Model Validation Roundtable, and presents the lessons learnt from various projects across the insurance industry on topics such as Independent Validation Operating Model, Internal Model Independent Validation Practices and Model Risk. A number of European insurance organisations met at the roundtable event in Belgium in March of this year and this white paper shares the outcome of their discussions.
Other white papers available from the Risk Dynamics web site are:
New Challenges in Investment Risk Management for European Insurers
An effective and sound approach to better assess, monitor and control the investment risk for Insurance companies under Solvency II. This paper addresses the new challenges of managing investment risks for Insurance companies and elaborates on what can be described as an effective and sound investment process under the Solvency II regime.
Risk and Control Framework – an Integrated Approach
This paper addresses the key challenges of implementing an effective and sound common framework for internal audit, risk, compliance and internal control functions supported by routine management information reporting.
Scenario and Stress Testing for Proactive Risk Management
Using stress testing for internal decision making. Prior to the crisis, most financial institutions did not perform stress tests that encompass a comprehensive firm-wide perspective across all risk types and businesses. Instead, they mainly relied on risk models, assuming that historical relationships constitute an adequate basis for assessing the development of future risks.
Very well said. Especially with regard to stress testing. The trick is (I think) is in balancing between using advanced analytics and not overdoing it.