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6 Cards in this Set
- Front
- Back
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7 types of operational risk loss events |
1. internal fraud 2. external fraud 3. Employment practices and workplace safety 4. Damage to physical assets - natural disasters 5. supplier client risk 6. business disruption and system failures - hardware and software failures 7. execution, delivery, and process management risk - failed transaction processing |
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Cycle management definiton |
Management of underwriting capacity as market prices change with underwriting cycle |
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4 areas that company should focus on to ensure effective cycle management |
1. Intellectual property - retaining top talent 2. Underwriter incentives - UW should not be penalized for low production during soft market 3. Market overreaction - firms with the most available capacity during the hard market will reap huge profits 4. owner education - |
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Primary objectives of internal controls (4 out of 5) |
1. reliability and integrity of information 2. compliance with policies, plans, procedures, laws, regulations, and contracts 3. safeguarding of assets 4. economical and efficient use of resources 5. accomplishment of established objectives and goals for operations or programs |
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4 insurer specific examples of key risk indicators |
1. Production - hit/retention ratio 2. Staffing - employee turnover 3. Internal controls - audit amounts 4. Claims - frequency |
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4 categories of strategic risk |
1. Industry - capital intensiveness, overcapacity, commoditization, deregulation 2. Technology 3. Brand 4. Competitor |
