Risk Management: The Current Financial Crisis, Lessons Learned and Future Implications

The 2009 call for essays, “Risk Management: The Current Financial Crisis, Lessons Learned and Future Implications,” which was published in early 2009, contained 35 short essays . Over half of those essays were contributed by folks who were on the INARM email group.

The Joint Risk Management Section of the Society of Actuaries (SOA), the Casualty Actuarial Society (CAS), and the Canadian Institute of Actuaries (CIA) in collaboration with the SOA Investment Section, the International Network of Actuaries in Risk Management (“INARM”) and the Enterprise Risk Management Institute International (“ERM-II”), propose publishing a second series of essays as a follow-up to the first to address “Risk Management: Part Two – Systemic Risk, Financial Reform, and Moving Forward from the Financial Crisis.”

Systemic risk is the risk of the collapse of an entire financial system or market as opposed to risk associated with any one individual entity. Risk systems consist of social institutions, laws, processes and products designed to facilitate the transfer, sharing, distribution and mitigation/hedging of risks between various buyers and sellers. Examples of risk systems include insurance, banking, capital markets, exchanges, and government and private health and retirement programs. Historically, these risk systems are rarely analyzed in a manner that looks at the ability of the system to survive extreme risk events and still carry out their function – creating an ongoing market for the exchange of risk. The failure of a risk system may be due to asymmetric information, unbalanced incentives of its participants and/or the failure of trust amongst its participants. In reflecting on the events of the last two years, is it possible to effectively develop early warning indicators that trigger intervention in advance of a complete collapse of an entire financial system or market? Does it make sense to have a chief risk officer of, say, the United States of America, whose role it would be to manage/mitigate this risk?

We invite the submission of essays to address these questions, and to offer thought leadership on the ERM discipline and the essential elements needed to maintain risk transfer systems in times of unusual stresses and unlikely events.

This topic has been intentionally left broad to allow essays that address industry-specific issues or a wide range of issues across industries. Each essay should be no more than two pages (1,500 words or less) and should be submitted no later than Friday September 15, 2010. Depending on the response, we may limit the number of essays that are published. SOA/CAS resources will be utilized to publish and promote the resulting publication. Publication is planned for Fall of 2010. Submit your essay here .

Awards for worthy papers:

1st Place Prize – $500
2nd Place Prize – $250
3rd Place Prize – $100

Feel free to pass along any questions to Robert Wolf , FCAS, CERA, ASA, MAAA, Staff Partner- Joint Risk Management Section and Investment Section, who will be coordinating the publication.

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Explore posts in the same categories: Financial Crisis, Risk Management, Systemic Risk

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