Hong Kong – ERM on the Move

RBC on the horizon

In the run-up to the introduction of the RBC regime, Hong Kong’s recently established independent insurance regulator (“IA”), has issued this circular. Specifically, the regulator encourages all authorized insurers to participate in a first, quantitative impact study (“QIS 1”). The IA has given a challenging deadline for submission: the report is due by 01 December 2017.

ERM on the Move

Amongst many other things, HK-based insurers need to provide their “top 10” operational risk events by loss amount.

If they have these data at a simple push of a button, that’s great, but what if they don’t? Enterprise Risk Management enters the stage here. Risk reporting is a key feature of any good ERM framework. Furthermore, risk reporting will become a standard feature under Hong Kong’s evolving insurance regulation. Hence, it is the right time to set-up a risk register now and profit from easy reporting in the future.

In addition, a good risk register is as good as “half way there” to set up an ERM-framework. Do you know that companies with good ERM practice are valued approximately 20% higher compared to peers with sub-standard ERM? That sounds like a good investment to me.

SO WHATs NEXT?

Setting-up a risk register can be a daunting task. How broad and detailed should a good risk register be? What is the right balance between high level views and the necessary attention to details? How do I balance management views with the risk perceptions of the board of directors? And last, but not least: how do rating agencies and regulators look at risk?

My blog posts describe the journey of risk mapping.

My Contribution

How do you get ERM on the Move? Wouldn’t it be nice to have a pre-populated risk list? Or some industry benchmarks to start with? No need to reinvent the wheel, right?

That’s exactly where I, as an experienced industry and risk professional, come in to make your journey to a good risk list, efficient, smooth and effective. I’d be happy to tell you more how I will accelerate your ERM-journey. Contact me at reto.brosi@megrow.asia or via any of the social media buttons at the bottom of the page.