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.


TermGroupingOrganization or Jurisdiction Defining TermSource of DefinitionDefinition
Scenario AnalysisMethodsIAISIAIS Supervisory MaterialA complicated type of test, which contains simultaneous moves in a number of risk factors and is often linked to explicit changes in the view of the world. S
Scenario AnalysisMethodsThe European Economic AreaCEA Solvency IISimulation of an alternative set of parameters within a model in order to establish the impact on the outcome. S
Scenario AnalysisMethodsThe European Economic AreaSolvency IIThe term is mentioned in the Guidelines on the ORSA, but has not been defined explicitly.S
Scenario AnalysisMethodsUnited StatesNAIC ORSA MANUALAnalysis of the impact of possible future outcomes, based on alternative projected assumptions. This can include changes to a single assumption or combination of assumptions.S
Scenario AnalysisMethodsUnited StatesU.S. ASB Terms(Scenario Test) A process for assessing the impact of one possible event or seveal simultaneously or sequentially occuring possible events on an organization's financial position.S