Overview of Enterprise Risk Management

This document is intended primarily to further the risk management education of candidates for membership in the Casualty Actuarial Society (CAS). Current members of the CAS as well as other risk management professionals should also find this material of interest. In Chapter II, the evolution to and rationale for enterprise risk management (ERM) is explained. The "ERM movement" is derived by both internal and external pressures - pressures that are both fundamental and enduring. Chapter III defines ERM for CAS purposes, and lays out its conceptual framework. The definition makes clear that ERM is a value-creating discipline. The vocabulary of ERM is established in Chapter IV, which also describes the measures, models, and tools supporting the discipline. The close linkage between ERM and corporate performance management is made clear in this discussion. With the conceptual and technical foundations of ERM thus established, Chapters V and VI turn to the actual practice of ERM. Chapter V presents relevant case studies from various industries and Chapter VI offers some practical consideration in implementing ERM.