“If you think of the finance department more broadly, besides their core fiduciary responsibilities they are very involved in risk management. I've noted a lot of companies start up enterprise risk management approaches that reside in the financial area because people think of financial risk first before it spreads to other things.
When I was with Amerisure, we built a big analytics space for the ERM function to be able to help us analyze financial trends and market trends. We just started to scratch the surface of predictive modeling.
More and more I think ERM is going to become a core competency of financial areas. Organizationally—with the support of IT—they are going to be looked on as the purveyor of financial risk data and information and come to the table with it, too.
That implies, in some financial areas, a big skills upgrade. Do they have the talent there to think bigger picture and engage effectively with newer technology platforms and have the ability to tie this together across the enterprise? Some places have that; others struggle a little bit with it.”
(Frank Petersmark is CIO Advocate for X by 2.)
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
