Insurance Practitioners’ Association Istanbul Conference

1. Insurance Practitioners’ AssociationIstanbul Conference 30th September – 1st October 2010

2. Transportation Presentation Lessons from Implementing an ERM Programme Date Speaker - Ian Canham

3. No single approach to ERM implementation • Process must have • Business focus • Add to existing business process • Cultural fit to organisation

4. Business Focus • Must be aligned to Commercial business not an academic undertaking • Communication must be simple to understand and allow action • Benefit must be seen by individual managers, who must implement outcomes • Owned by management facilitated by Risk Manager

5. Additive to Current Process • Utilise current management information not new system • Language and measurement must be same and delivered in same way as other management reports ie financial, safety, operational • Output must be the basis for risk management decisions across the group - must be a tool

6. Must Fit Culturally • If centralised organisation must be the same • Must flex with the organisation to create required behaviours • This is a continual improvement process/give up small victories

7. Tools • Risk workshop • Risk radar • Reporting

8. Ideas for Risk Workshop • Intro and war stories • Outline of strategic objectives • Risk categories and definitions – agree framework for the future • Risk appetite – agree high level tolerance matrix • Risk identification and assessment – group and regional/business • Risk treatment - Controls – Acceptance – Insurance • Ownership, reporting framework, role of the audit committee • Role of risk review from specialists – e.g. internal audit, legal, compliance, HS&E etc

9. Risk Maps - EPS example

10. What not to do • Off the shelf process • Forcing process on the business • Demanding exact measurement

11. ERM and Insurance • ERM outcome should be basis for the insurance process • Insurers will support a well managed company and this provides management and risk judgement

12. Why Risk Managers should implement ERM “Inability to be on the same wavelength as senior management is a common mistake, Risk managers careers often come to an end due to communication not competence problems”