On July 28, 2016, the Chief Financial Officers Council (CFOC) and the Performance Improvement Council (PIC) released a document entitled Playbook: Enterprise Risk Management (ERM) for the U.S. Federal Government. The document is designed to provide key concepts for a comprehensive and effective ERM program to meet the requirements of the revised OMB Circular A -123.
In the U.S., risk-based capital (RBC) is a method developed by the National Association of Insurance Commissioners (NAIC) to measure the minimum amount of capital that an insurance company needs to support its overall business operations. Can the concepts of RBC work for self-insurers with large, complex risk profiles?
On May 2, 2016 Charlie Munger of Berkshire Hathaway commented, “I like the idea of artificial intelligence because there is so little of the real thing.” While this comment is strikingly humorous in our world of one liner headlines and communication, will AI produce the promise of outstanding results for the risk management field?