ERM Glossary Term

International ERM Glossary

The International ERM Glossary is intended to provide users with a set of definitions that are in common usage around the world by actuaries, regulators and members of the insurance industry. The purpose in developing the glossary is to help provide a common understanding of the terms currently in use, as definitions and meanings have varied over time, and among practitioners. It can also be used as a training and educational tool for regulators.

The glossary can be consulted per letter, organization or grouping.

DISCLAIMER: The content of the International ERM Glossary has been compiled by the Joint ORSA Subcommittee of the Insurance Regulation Committee and the Enterprise and Financial Risk Committee of the IAA. This information has been collated and presented for educational and informational purposes to the members of the IAA and interested parties. The IAA assumes no responsibility for the accuracy, completeness, currency, reliability of the information in the International ERM Glossary or access to any information contained on any of the sources cited in the Glossary. The IAA, its employees and officers shall not be liable for any loss or damage, direct or indirect, which may arise or occur as a result of the use of or reliance upon any of the material in the International ERM Glossary.

Export

Glossary
A C D E F G I L M O P R S T U V

Term	Grouping	Organization or Jurisdiction Defining Term	Source of Definition	Definition	Hidden
Market Risk	Risk Categories	China	CIRC C-ROSS Conceptual Framework	The risk of unexpected losses arising from adverse changes in interest rates, FX, equity, commodity, etc.	M
Market Risk	Risk Categories	IAIS	IAIS Supervisory Material	The risk to an insurer's financial condition arising from movements in the level or volatility of market prices of assets, liabilities and financial instruments, whether on all investments as a whole (general market risk) or on an individual investment (specific market risk).	M
Market Risk	Risk Categories	International Actuarial Association	IAA - Acturial Aspects of ERM for Insurance Companies	The risk of loss arising from changes in market variables.	M
Market Risk	Risk Categories	International Risk Management Institute	IRMI Terms	Exposure to uncertainty due to changes in rate or market price of an invested asset (e.g., interest rates, equity values).	M
Market Risk	Risk Categories	The European Economic Area	CEA Solvency II	The risk of changes in values caused by market prices or volatilities of market prices differing from their expected values.	M
Market Risk	Risk Categories	The European Economic Area	PRA Rulebook	means the risk of loss or of adverse change in the financial situation resulting, directly or indirectly, from fluctuations in the level and in the volatility of market prices of assets, liabilities and financial instruments.	M
Market Risk	Risk Categories	The European Economic Area	Solvency II	The risk of loss or of adverse change in the financial situation resulting, directly or indirectly, from fluctuations in the level and in the volatility of market prices of assets, liabilities and financial instruments. (Solvency II Directive art. 13(31))	M