a day in the life of an erm savvy executive · 21 deloitte greenhouse powerpoint timesaver –...
TRANSCRIPT
2014 Convention knowing more 22-23 October, Cape Town
A Day in the Life of an ERM Savvy Executive
Wayne Savage
Philip van den Berg
Lindy Schmaman
2014 Convention knowing more 22-23 October, Cape Town
Agenda
1. Introduction
2. Scene 1
3. Scene 2
4. Scene 3
5. Conclusion
2
2014 Convention knowing more 22-23 October, Cape Town
Role Play
3
Wayne - The not-so risk-savvy executive
Phil – The risk savvy executive
2014 Convention knowing more 22-23 October, Cape Town
Scene 1 – Business performance
over the last quarter
4
• Volume of new business 20%
• VNB margin 8% • Market share • Sales • Cross Sales
2014 Convention knowing more 22-23 October, Cape Town
Scene 1 – Business performance
over the last quarter
5
LSM Bands 1 – 4
Increased lapse risk
No Data => Proxy pricing
2014 Convention knowing more 22-23 October, Cape Town
Scene 1 – Business performance
over the last quarter
6
Primary driver of value is the expected cashflows
Understand the volatility of the cashflows
Hold capital for that volatility
Focus on increasing value rather than market share
Consider capital costs in pricing
Enhance data and processes
Performance structures reflect value and risk
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[Member Firms and DTTL: Insert appropriate copyright]
Actual Risk Profile Target Risk Profile
VALUE
Monitoring and Reporting Performance Targets
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2014 Convention knowing more 22-23 October, Cape Town
Scene 2 –Potential acquisition
10
Increase in assets under management
Healthy earnings growth
Financials
2014 Convention knowing more 22-23 October, Cape Town
Scene 2 – Potential Acquisition
11
Market, Credit, Property, Operational
Regulatory and market conduct risks
Systems and infrastructure
Model governance
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[Member Firms and DTTL: Insert appropriate copyright]
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2014 Convention knowing more 22-23 October, Cape Town
Scene 3 – Stress testing
15
2014 Convention knowing more 22-23 October, Cape Town
Scene 3 – Stress testing
16
Appetite
Trigger
Trigger
Trigger
Trigger
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Scene 3 – Stress testing
17
Break our business model
Stress testing
What could cause this?
Identify management actions & challenge
strategy
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[Member Firms and DTTL: Insert appropriate copyright]
Visual Narrative
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Concluding thoughts
20
[Member Firms and DTTL: Insert appropriate copyright]
3
21 Deloitte Greenhouse PowerPoint
timesaver – October 2013
1. Enhancement to
data architecture and
IT infrastructure
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2
2
2. Align risk and
business processes
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Visual Narrative 3. Finance, risk
and business
need to team up
2014 Convention knowing more 22-23 October, Cape Town 24
Thank you
Questions?