Deriving Value from ORSA: Board Perspective

By International Actuarial Association · 2015

Study guide: Exam GI-201

A paper of the International Actuarial Association, April 2015, produced by the Joint Own Risk Solvency Assessment (ORSA) Subcommittee of its Insurance Regulation Committee and Enterprise and Financial Risk Committee. It gives the members of an insurer's Executive Board insight into the value of the ORSA process, regardless of the ORSA requirements of a given regulatory environment, and sets out the expectations a Board should have of the information senior management communicates to it.

On the syllabus

• Exam GI-201 — Outcomes 6e; pp. 1-8.

Preface

• Why is ORSA relevant today?
• What is ORSA?

Introduction

Understanding the company's risk appetite and risk profile

Assessing the adequacy of the risk evaluation and risk treatment processes

• Identification
• Priorities
• Quantitative vs. qualitative evaluation and treatment of risks
• What-if analyses
• Capital and resource adequacy
• Emerging risks
• Model validation and governance
• Regular review of the ERM framework

Understanding management's strategic risk-based decisions

Limitations and caveats

Appendix: Glossary of Terms

Sources

• Deriving Value from ORSA: Board Perspective (International Actuarial Association, April 2015) — the document: title page, table of contents, the preface and introduction for the lead, and the headings of the divisions
• GI 201 Syllabus, Nov 2026/Mar 2027 (SOA) — the citation and the assignment (outcome 6e, pp. 1-8)