Enterprise Risk Management

An Enterprise Risk Management Framework is an enterprise-wide process to systematically identify, measure, monitor and manage the major risks of property and casualty insurance    companies.  An ERM Framework includes three components:

  • Establish a strategic risk environment
  • Identify, monitor, manage and mitigate risks
  • Measure enterprise-wide risk tolerance levels to quantify risks including the impact of risk correlations

Objectives of an Enterprise Risk Management Framework

The objective of the Company’s Enterprise Risk Management (“ERM”) framework is to:

  • Ensure the Company has adequate capital to achieve its long-term strategic goals

  • Sustain a consistent level of operating profitability

  • Reduce earnings and capital volatility

  • Improve operating efficiency and effectiveness

  • Create a risk-aware culture that encourages intelligent risk-taking throughout the Company

  • Maintain excellent rating from rating agencies and comply with regulatory requirements

 Additionally, the Company’s ERM framework will facilitate the management and mitigation of the key risks of the Company by:
  • Developing consistent metrics to measure risk and to establish risk tolerance levels
  • Identifying key control or monitoring activities to mitigate key risk factors
  • Establishing common enterprise risk management terminology
  • Assigning roles and responsibilities to board, senior management, individual risk owners and others

PCIC Strategies ERM Implementation Process

PCIC Strategies has a unique three-phase approach for implementing an ERM Framework, as follows: