Services

Risk Management Framework to Support the Business

The core risk management function of ensuring the company’s risk management framework is thoroughly embedded across the company and at every level.

Topics covered include:

Risk Appetite Framework and cascading to front-line operations.
Risk Assessments, Risk Mitigation.
Risk Register / Internal Control Frameworks.

Risk Reporting, KRIs, KCIs.

• Industrialisation of the risk reporting process.

Risk Governance and Board Reporting:

• Committee structures, membership and terms of reference.
• Roles and responsibilities chart.
• Risk policy setting.

Risk Management at firm level:

• Concentration management, Liquidity risk management.
• Project risk management, Crisis management.
• Emerging Risks, Stress and scenario testing, Reverse stress testing.
• Strategic risk management.
• Frictional and tax risk management.
• Aggregation and diversification risk management.

Integration of Risk Appetite levels and the capital setting processes.
Performance of the firm’s ORSA: integration with strategy, risk profile and decision making.

Operational Risk.
Embedding and Risk Culture:

• Incentive programme structure.
• Risk training programmes.

CRO contribution to Remuneration Reports.
Operational Resilience.
Cyber Risk.
Climate Change Risk.
Managing Model Risk and Uncertainty, including evaluation of external models.
Digital Transformation Risk.

Regulatory Reporting, including PSM visits.
Rating Agency Reporting.
External Risk Disclosure, including FRC principal risk reporting and long term viability statement.

Solvency II Compliance and Evidencing

Making it part of business as usual.

Topics covered include.

Evidencing SII Compliance across the organisation, Lloyd’s LMS compliance.
Integration with existing Internal Control Framework.
Governance and Project Management.
Standard Formula assessment of appropriateness.
ORSA Reporting: documentation, validation, ORSA record.
Pillar 3 Reporting: SFCR, RSR.

Internal Model Management in a Live Environment.

Use Test: use in business decision making.
Model Completeness Framework.
Model Change Oversight.
Tests and Standards Documentation.
External Models, Risk Ranking.
Model Governance.
Board training on the Internal Model.
Validation Reports.

Economic and regulatory capital management in practice

As part of running the business / supporting the company’s strategy.

Economic capital modelling.

• Economic capital methodology.
• Economic capital system design.
• Economic capital calibration.

Risk-based financial management.

• Setting risk-based performance measurement and management framework.
• Implementing risk-based pricing framework.
• Setting capital management and allocation process.

Management decisions allowing for risk.

“Risk-based decision making”: support for risk appetite frameworks and cascading to front-line operations. Choices of risk metrics.
Return on capital, capital attribution, return-on-capital targets, multi-period views, management and market perceptions.

How much buffer capital to hold.

Balance between regulatory capital, rating agency requirements, shareholder views on continuity.
Earnings variability and ability to tap the capital markets.
Link to risk appetite statements.
Dealing with the PRA CP2317 on Financial management and planning by insurers.

Capital management strategies.

Target SCR coverage ratios pre and post stress events.
Capital held at Group level versus in subsidiaries.
Management action catalogues.
SCR coverage ratios: market studies, and understanding what are the drivers.

Project / Change Management and Interim Roles

Andrew is able to offer services in the area of range of Project / Change Management and Interim Roles at senior levels in areas such as:

• Working at Board and Board Committee level on the entire range of risk management and reporting activities.
• Use of firm’s ORSA at Board level in strategy and decision making.
• Oversight / review of Capital Modelling and Capital Management for Groups and subsidiaries.
• Oversight / review of Exposure Management capability.
• Oversight / review of compliance with Solvency II.
• Board training programmes on risk and capital, including Internal Models.
• Newly emerging issues such as Brexit, GDPR, Cyber risk (both threat and underwriting opportunity) and IFRS 17.

His qualifications for the above are:

He has been in C-suite positions for the last 21 years:

• Chief Actuary 6 years; CRO 15 years.

Board experience: Director of PRA regulated entity last 11 years.
Solvency II Director 2011-2016: successful multi-year major change project.
Participated in or led 3 major corporate restructurings.

At industry level:

CRO of Year award from InsuranceERM 2014.
Established presenter at many industry conferences and business schools on insurance and risk management topics.

At the Institute of Actuaries:

Elected to Council, the top strategy and governance oversight body.
Member of Audit & Risk Committee.
Previous Chair of Risk Management Board.
Previous member of GI Board.
GIRO lifetime achievement award for services to research.