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.

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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
Stress Test	Methods	IAIS	IAIS ICP 16	The method of measuring the financial impact of stressing one or relatively few factors affecting the insurer.	S
Stress Test	Methods	IAIS	IAIS Supervisory Material	The method of solvency assessment that provides for the consideration of the impact (current and prospective) of a particular defined set of alternative assumptions or outcomes that are adverse. Consideration is given to the effect on the insurance company assets, liabilities and operations of a defined adverse scenario.	S
Stress Test	Methods	International Actuarial Association	IAA ISAP	A process for assessing the impact of one possible event or several simultaneously or sequentially occurring possible events on an entity's financial position (draft).	S
Stress Test	Methods	The European Economic Area	CEA Solvency II	A type of scenario analysis in which the change in parameters are considered significant, or even extreme.	S
Stress Test	Methods	The European Economic Area	Solvency II	The term is mentioned in the Guidelines on the ORSA, but has not been defined explicitly.	S
Stress Test	Methods	United States	NAIC ORSA MANUAL	A type of scenario analysis in which the change in parameters is considered significantly adverse or even extreme.	S
Stress Test	Methods	United States	U.S. ASB Terms	A process for measuring the impact of adverse changes in one or relatively few factors affecting an organization's financial position.	S