Abstract
Much of the push for ERM has come from regulators and rating agencies, but it is being applied in internal company decision‐making as well. This paper reviews the progress made and the needs still outstanding in two key areas of application: optimal capital level for an insurer and risk‐adjusted profitability of business units. The basic conclusion is that progress has been made in these areas, but more is needed. Building models is not emphasized—it will be assumed that a state‐of‐the art model is available. The emphasis is on using such models in decision‐making.
Series
Working Paper
Year
2008
Categories
Risk Control
