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December 18, 2014
During the financial meltdown of 2008, insurance companies have generally demonstrated a greater
resilience than other financial organizations, where achieving a precise understanding of risks
has become increasingly very difficult.
Insurance companies are dealing with a riskier environment both in terms of natural and manmade
Government regulators, company directors and investors all demand a clearer accounting system for
all these risks.
Organizations continue to struggle in order to meet those demands due to the disparate and
disconnected systems and data quality issues.
Every successful insurance or financial organization adequately managed risks from an enterprise
perspective. And in order to continue managing risks organizations need to develop the risk management
ERM (Enterprise Risk Management) software solutions generally consist of a process and framework
that enables these organizations to clearly identify and measure all the exposures across the organization,
applying analytic capabilities in order to produce coherent reports that business managers can
apply to their daily decision making processes.
The main objective of ERM software is to enable these organizations to take up risks in a much
better manner. When designed correctly, an ERM program align the organizations risk appetite with
its risk taking initiatives.
Bill Spaniard provides insurance and technology editor Anthony O’ Donnell with the following criteria
in order to build an effective insurance ERM framework.
Increasing the efficiencies -- Through integration and convergence to make certain that you
remove unnecessary oversight in order to prevent the duplicate control activities. Consistency also
needs to be established across the different risks that occur within the organization and business
functions they work with.
They also include minimizing the touch points to business in control assessments, establishing a
faster reporting timeframe.
Organization and governance -- To establish a clear definition of transparency in terms of the risks,
the responsibilities, the various strategies in terms of finance and internal audit. A company
strategy should state the definition of the board in terms of a desired risk strategy, along with an
alignment of risks with definitive roles and responsibilities.
Integration -- In order to be widely communicated, the guidelines need to be properly integrated
in terms of business planning, capital planning, and risks limit setting with performance measurement.
A successful integration of the risk functions as it pertains to the data, the IT systems, modelling,
business knowledge and commercial awareness is also critical.
Common language around risks -- The main function of enterprise risk management must be able
to establish and effectively communicate with the organization regarding all the risks. Most common
definition for risks is the potential for loss or the diminished opportunity to gain something that
could help the organization achieve all objectives.
Roles and Responsibilities -- Roles and responsibilities have to be clearly communicated to each
and every member of the organization. Board members and CEOs of a specific organization do have the
accountability for all risks within their organization. Risks management practices need to be discussed
periodically along with the risk management policies being reviewed and approved.
Risk Monitoring and Reporting -- The key risks that were identified within the organization should
be monitored and periodically report it to the board members and CEO of the organization.
The establishment of an enterprise risk management framework is not just a one kind of exercise
that involves just a few participants.
It's a dynamic, intensive and continuous process that requires a wider participation from the company.
And when implemented successfully, ERM would lead the organization with unlimited frameworks.
About the author: Sophia Wright covers the latest news and updates in Risk Management strategy. With
more than seven years of marketing management experience, she has contributed to a variety of traditional
and online publications. She has over six years of experience in journal risk analysis and as a practicing
manager of enterprise risk management software solutions and
successfully executing several projects in ORM software Solutions, internal audit risk assessment and
Governance risk compliance.
In other technology news
The changes today in the technology and in the new trends they've created have greatly
modified the way people live, the way they carry out their business and in the manner people
The elements behind such a faster response being offered to the technological innovations is
the benefits attached to them.
Among several other things taking the lead over the technological innovation carrying out
business online and having a professional website have also been something important.
The first and foremost reason behind developing a professional website and conducting business
online is cost savings.
A website takes a lot less up-front investment than a physical business. Moreover, when
you start working over the internet you have a list of such marketing opportunities that are free
or very low cost.
Having a professional website makes you save a lot of money. The physical location of a business
might not be easily accessible however-- the virtual address of a website may be accessed throughout
By way of an established website you may keep your customers informed with everything that
You may post your latest stock details, promotional messages, announcement of sales and much
more by way of a single click.
Author Bio: Victoria Lucy is an experienced writer who contributes in different technology forums to
assist students. She works with a web development company in the U.K.
In other technology news
A mere fact that no one can ignore these days is that trends are mostly meant to change over
No matter which industry you think of, with the passage of time every trend that is seen in
the market tends to be replaced sooner or later.
Similar situations go perfectly well with website designs. As time changes, every new year
has something new to offer to sites as well in terms of the overall designs such as layout, style,
color combinations, typography and much more.
But for the designers, predicting the layout beforehand is always a great approach as it helps
deliver the latest appearance on time.
There are a number of ways a site designer may predict the upcoming trends in terms of the website
of which few are provided below.
To be sure, going through different portfolios of different well known website designers gives an
insight to what is going to happen in the world of site design for the upcoming year.
The latest ideas being used by the designers for their upcoming projects are based on the latest
Moreover, keeping an eye on a successfully and recently awarded site designer is also something
that may offer you some idea in which direction the industry is moving.
You may find a number of people associated with several other fields of design which
may include the fashion industry, interior designing and much more.
Keeping in touch with the latest trend changes taking place in those segments is also a way
to keep yourself equipped with the predictions.
The colors, various styles and other similar changes in those trends are usually much common
and you can have an idea to some extent regarding your point of focus for the site.
Then of course you have social media, and it has always been a concern these days playing an
important role in the life of every individual.
No matter which field you belong to, you may have a complete insight to your related industry
over social media.
People share their thoughts, ideas and predictions in numerous ways so making the most of it
is a great idea.
Keep an eye on what site designers are sharing, what they are posting and what the latest news in
terms of trends is so that you may predict something for your new trendy website.
Also, keep an eye on design blogs to stay up to date. Things are changing fast and just reading on
the subject of what’s going on can help you be ready to mark the next trend.
You can look for new trends by starting to read tutorials about new techniques. Once a large
group of designers learns a new technique, it is certain to start showing up in finished projects.
Author bio-- I started my professional career after completing my Master from University of Westfield
in 2010. I have been working with a company which makes Custom CMS Website Design and also helps people
to know about the latest trends of technologies.
In other tech news
The European Commission is saying that it will try to impose new rules on virtual currencies
such as Bitcoin and Dogecoin after the bloc’s banking
regulator ordered lenders to shun them down.
“It’s imperative to move quickly on this issue,” said Chantal Hughes, a spokeswoman for Financial
Services Commissioner Michel Barnier.
“The potential for money laundering, illicit drugs, illegal arms sales and terrorist financing activities is
too serious to ignore,” she added.
The Commission, the EU’s executive arm, moved after the European Banking Authority said that banks
shouldn’t buy, hold or sell virtual currencies such as Bitcoins until regulators develop safeguards
to protect their integrity.
The watchdog identified more than seventy risks linked to the digital currencies ranging from
identity theft to the strong possibility that hackers could target a trading platform in specific.
Overall, virtual currencies such as Bitcoin and the Dogecoin have come under increased scrutiny
from financial regulators and prosecutors around the globe.
Mt. Gox, once the world’s biggest Bitcoin exchange trading platform located in Tokyo, filed for
bankruptcy in Japan earlier this year amid claims it lost more than 850,000 Bitcoins valued at close to
US $400 million.
China’s central bank barred financial firms from handling virtual currency like Bitcoin transactions last
“Regulators have become alert to the potential for fraud and disruption,” said Richard Reid, a
research fellow for finance and regulation at the University of Dundee, Scotland.
“Such attention from regulators is bound to curb the growth of markets such as Bitcoin,” he added.
The EBA called on the EU to devise rules for trading platforms and start groups to oversee each
internet currency to ensure that no individual can manipulate a currency.
The EU should consider extending the scope of anti-money laundering law to better cover virtual
currencies, according to the EBA.
“The EBA is of the view that a regulatory approach to addressing the risks it has identified
would require a substantial body of regulation,” the agency warned.
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