| Enterprise Risk Management | General | COSO | COSO | The culture, capabilities, and practices, integrated with strategy-setting and its execution, that organizations rely on to manage risk in creating, preserving, and realizing value. | E |
| Enterprise Risk Management | General | IAIS | IAIS ICP 16 | The process of identifying, assessing, measuring, monitoring, controlling and mitigating risks. | E |
| Enterprise Risk Management | General | IAIS | IAIS Supervisory Material | The process and activities of identifying, assessing, measuring, monitoring, controlling and mitigating risks in respect of the insurer's enterprise as a whole. | E |
| Enterprise Risk Management | General | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | ERM is a continuous process. ERM adopts a holistic view to risk and assesses risk from the perspective of the company's aggregate position as well as from a standalone perspective. ERM is concerned with all risks, including those that are unquantifiable or difficult to quantify. ERM considers uncertainty from both a positive and negative viewpoint. ERM aims to achieve greater value for all stakeholders by assisting in achieving an appropriate risk-reward balance. ERM considers both the short term and the long term aspects of risk. | E |
| Enterprise Risk Management | General | The European Economic Area | Solvency II | Not specifically defined. Insurance and reinsurance undertakings shall have in place an effective risk-management system comprising strategies, processes and reporting procedures necessary to identify, measure, monitor, manage and report, on a continuous basis the risks, at an individual and at an aggregated level, to which they are or could be exposed, and their interdependencies. (Solvency II Directive art. 45) | E |
| Enterprise Risk Management | General | United States | U.S. ASB Terms | The discipline by which an organization in any industry assesses, controls, exploits, finances, and monitors risks from all sources for the purpose of increasing the organization's short- and long-term value to its stakeholders. | E |
| Framework (ERM Framework) | General | COSO | COSO | The five components consisting of (1) Risk Governance and Culture; (2) Risk, Strategy, and Objective-Setting; (3) Risk in Execution; (4) Risk Information, Communication, and Reporting; and (5) Monitoring Enterprise Risk Management Performance. | F |
| Own Risk and Solvency Assessment (ORSA) | General | IAIS | IAIS ICP 16 | The assessment of whether an insurer's risk management and solvency position is currently adequate and is likely to remain so in the future. | O |
| Own Risk and Solvency Assessment (ORSA) | General | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | A company's assessment of its risks and of the solvency needs associated with those risks | O |
| Own Risk and Solvency Assessment (ORSA) | General | The European Economic Area | Solvency II | That assessment shall include at least the following:(a) the overall solvency needs taking into account the specific risk profile, approved risk tolerance limits and the business strategy of the undertaking, (b) the compliance, on a continuous basis, with the capital requirements, (c) the significance with which the risk profile of the undertaking concerned deviates from the assumptions underlying the Solvency Capital Requirement, calculated with the standard formula or with its partial or full internal model. (Solvency II Directive art. 45.1, text adjusted) | O |
| Own Risk and Solvency Assessment (ORSA) | General | United States | NAIC ORSA MANUAL | A component of an insurer's enterprise risk management (ERM) framework, is a confidential internal assessment appropriate to the nature, scale and complexity of an insurer conducted by that insurer of the material and relevant risks identified by the insurer assuciated with an insurer's current business plan and the sufficiency of capital resources to support those risks. | O |
| Risk Appetite | General | COSO | COSO | The types and amount of risk, on a broad level, an organization is willing to accept in pursuit of value. | R |
| Risk Appetite | General | Financial Stability Board | FSB Principles for an Effective Risk Appetite | The aggregate level and types of risk a financial institution is willing to assume within its risk capacity to achieve its strategic objectives and business plan. | R |
| Risk Appetite | General | IAIS | IAIS Supervisory Material | The aggregate level and types of risk an insurer is willing to assume within its risk capacity to achieve its strategic objectives and business plan. | R |
| Risk Appetite | General | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | The level and type of risk that an organization is willing to accept in order to achieve its objectives. | R |
| Risk Appetite | General | International Actuarial Association | IAA Deriving Value from ORSA | The level of aggregate risk that a company chooses to take in pursuit of its objectives. | R |
| Risk Appetite | General | International Risk Management Institute | IRMI Terms | The degree to which an organization's management is willing to accept the uncertainty of loss for a given risk when it has the option to pay a fixed sum to transfer that risk to an insurer. | R |
| Risk Appetite | General | United States | NAIC ORSA MANUAL | Documents the overall principles that a company follows with respect to risk-taking, given its business strategy, financial soundness objectives and capital resources. Often stated in qualitative terms, a risk appetite defines how an organization weighs strategic decisions and communicates its strategy to key stakeholders with respect to risk-taking. It is designed to enhance management's ability to make informed and effective business decisions while keeping risk exposures within acceptable boundaries. | R |
| Risk Appetite | General | United States | U.S. ASB Terms | The level of aggregate risk that an organization chooses to take in pursuit of its objectives. | R |
| Risk Appetite Framework | General | Financial Stability Board | FSB Principles for an Effective Risk Appetite | The overall approach, including policies, processes, controls, and systems through which risk appetite is established, communicated, and monitored. It includes a risk appetite statement, risk limits, and an outline of the roles and responsibilities of those overseeing the implementation and monitoring of the RAF. The RAF should consider material risks to the financial institution, as well as to the institution's reputation vis-à-vis policyholders, depositors, investors and customers. The RAF aligns with the institution's strategy | R |
| Risk Appetite Statement | General | Financial Stability Board | FSB Principles for an Effective Risk Appetite | The articulation in written form of the aggregate level and types of risk that a financial institution is willing to accept, or to avoid, in order to achieve its business objectives. It includes qualitative statements as well as quantitative measures expressed relative to earnings, capital, risk measures, liquidity and other relevant measures as appropriate. It should also address more difficult to quantify risks such as reputation and conduct risks as well as money laundering and unethical practices. | R |
| Risk Exposure | General | The European Economic Area | Solvency II | The term is mentioned in de Directive, but has not been defined explicitly. | R |
| Risk Exposure | General | United States | NAIC ORSA MANUAL | For each risk listed in the company's risk profile, the amount the company stands to lose due to that particular risk at a particular time, as indicated by a chosen metric. | R |
| Risk Limit | General | COSO | COSO | The maximum amount of risk that an entity is able to absorb in the pursuit of strategy and business objectives. | R |
| Risk Limit | General | Financial Stability Board | FSB Principles for an Effective Risk Appetite | Quantitative measures based on forward looking assumptions that allocate the financial institution's aggregate risk appetite statement (e.g. measure of loss or negative events) to business lines, legal entities as relevant, specific risk categories, concentrations, and as appropriate, other levels. | R |
| Risk Limit | General | IAIS | IAIS Supervisory Material | The level of risk to which the insurer is prepared to be exposed. The risk measure might be a supervisory one or an internal one or a combination of both. | R |
| Risk Limit | General | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | The maximum amount of risk that can be underwritten. Risk limits will often be identified for key risk-taking activities such as insurance underwriting and investment. | R |
| Risk Limit | General | United States | NAIC ORSA MANUAL | Typically quantitative boundaries that control the amount of risk that a company takes. Risk limits are typically more granular than risk tolerances and may be expressed at various levels of aggregation: by type of risk, category within a type of risk, product or line of business, or some other level of aggregation. Risk limits should be consistent with the company's overall risk tolerance. | R |
| Risk Limit | General | United States | U.S. ASB Terms | A threshold used to monitor the actual risk expousre of a specific unit or units of the organization to ensure that the level of aggregate risk remains within the risk tolerance. | R |
| Risk Profile | General | COSO | COSO | A composite view of the risk assumed at a particular level of the entity, or aspect of the business model that positions management to consider the types, severity, and interdependencies of risks, and how they may affect performance relative to its strategy and business objectives. | R |
| Risk Profile | General | Financial Stability Board | FSB Principles for an Effective Risk Appetite | Point in time assessment of the financial institution's gross and, as appropriate, net risk exposures (after taking into account mitigants) aggregated within and across each relevant risk category based on forward looking assumptions. | R |
| Risk Profile | General | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | A description of the risk exposures of an organization. | R |
| Risk Profile | General | International Actuarial Association | IAA Deriving Value from ORSA | The characteristics of the material and relevant risks to which a company is exposed over a specified period of time. | R |
| Risk Profile | General | The European Economic Area | Solvency II | The term is used a lot in de Directive, but has not been defined explicitly. | R |
| Risk Profile | General | United States | NAIC ORSA MANUAL | A delineation and description of the material risks to which an organization is exposed. | R |
| Risk Tolerance | General | IAIS | IAIS Supervisory Material | Used to include the active retention of risk that is appropriate for an insurer in the context of its strategy, financial strength, and the nature, scale and complexity of its business and risks. Risk tolerance is typically a percentage of the absolute risk bearing capacity for an insurer. | R |
| Risk Tolerance | General | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | A quantitative description of the extent of risk that the company is willing to take in respect of a specific risk. | R |
| Risk Tolerance | General | International Risk Management Institute | IRMI Terms | The willingness of an organization to incur risk to gain future reward. | R |
| Risk Tolerance | General | The European Economic Area | Solvency II | The term risk tolerance limit is used in de Directive itself and Guidelines on the ORSA, but has not been defined explicitly. (Solvency II Directive art. 45 on ORSA) | R |
| Risk Tolerance | General | United States | NAIC ORSA MANUAL | The company's qualitative and quantitative boundaries around risk-taking, consistent with its risk appetite. Qualitative risk tolerances are useful to describe the company's preference for, or aversion to, particular types of risk, particularly for those risks that are difficult to measure. Quantitative risk tolerances are useful to set numerical limits for the amount of risk that a company is willing to take. | R |
| Risk Tolerance | General | United States | U.S. ASB Terms | The aggregate risk-taking capacity of an organization. | R |