This guide covers the evolution and application of the concept of inherent risk, originally rooted in insurance practices. In the past, underwriters used Maximum Possible Loss (MPL) to assess potential catastrophic losses, focusing on worst-case scenarios. However, this approach was highly theoretical and often unrealistic. Over time, insurers transitioned to Estimated Maximum Loss (EML), which… Continue reading Guide to inherent and residual risk
Tag: risk reduction
How quantitative risk analysis can transform insurance buying and other business decisions
Alex Sidorenko, group head of risk, insurance and internal audit at Serra Verde Group, shares why technological advances mean that every CRO can tackle quantitative risk analysis to improve threat management and insurance buying Alex Sidorenko, group head of risk, insurance and internal audit at Serra Verde Group, is speaking at the Risk-!n conference on May 30-31 in… Continue reading How quantitative risk analysis can transform insurance buying and other business decisions
The better alternative to “inherent” and “residual” risk concepts
Few things are certain in life: death, taxes and someone in the risk community asking about inherent and residual risks. In fact the question is so frequent that I even did a short video response: To most organisations inherent vs residual comparison is a way to measure potential risk mitigation effectiveness and the reduction in… Continue reading The better alternative to “inherent” and “residual” risk concepts
Forget about risk management. Measure the likelihood of success instead. #ChangingRisk
My friend, Norman Marks, has been talking about rebranding risk management for years. Norman calls for risk professionals to focus on enabling success rather than avoiding failure. I think this is brillian advice. A way to communicate risk management insights to executives and the Board is to talk about the likelihood of success. Well, the… Continue reading Forget about risk management. Measure the likelihood of success instead. #ChangingRisk
Finally! An alternative to risk matrices
Ok, the title is obviously a joke, because the alternatives (multiple) have been available to anyone willing to learn for over 50 years. But since you clicked, this article will probably change your life for the better. Thank you Damir Ramazanov, Group Project Risk Manager, ERG for helping with the article and providing quality review. … Continue reading Finally! An alternative to risk matrices
