A Day in the Life of an ERM Savvy Executive · 21 Deloitte Greenhouse PowerPoint timesaver –...
Transcript of A Day in the Life of an ERM Savvy Executive · 21 Deloitte Greenhouse PowerPoint timesaver –...
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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
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2014 Convention knowing more 22-23 October, Cape Town
Agenda
1. Introduction
2. Scene 1
3. Scene 2
4. Scene 3
5. Conclusion
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2014 Convention knowing more 22-23 October, Cape Town
Role Play
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Wayne - The not-so risk-savvy executive
Phil – The risk savvy executive
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2014 Convention knowing more 22-23 October, Cape Town
Scene 1 – Business performance
over the last quarter
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• Volume of new business 20%
• VNB margin 8% • Market share • Sales • Cross Sales
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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
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2014 Convention knowing more 22-23 October, Cape Town
Scene 1 – Business performance
over the last quarter
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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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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
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Increase in assets under management
Healthy earnings growth
Financials
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2014 Convention knowing more 22-23 October, Cape Town
Scene 2 – Potential Acquisition
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Market, Credit, Property, Operational
Regulatory and market conduct risks
Systems and infrastructure
Model governance
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2014 Convention knowing more 22-23 October, Cape Town
Scene 3 – Stress testing
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2014 Convention knowing more 22-23 October, Cape Town
Scene 3 – Stress testing
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Appetite
Trigger
Trigger
Trigger
Trigger
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2014 Convention knowing more 22-23 October, Cape Town
Scene 3 – Stress testing
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Break our business model
Stress testing
What could cause this?
Identify management actions & challenge
strategy
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Visual Narrative
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2014 Convention knowing more 22-23 October, Cape Town
Concluding thoughts
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21 Deloitte Greenhouse PowerPoint
timesaver – October 2013
1. Enhancement to
data architecture and
IT infrastructure
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2
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2. Align risk and
business processes
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Visual Narrative 3. Finance, risk
and business
need to team up
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2014 Convention knowing more 22-23 October, Cape Town 24
Thank you
Questions?