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This page has nine sections

  • Regulatory links
  • General Risk Management papers and articles
  • Insurance Risk Management papers and articles
  • Pension Fund Risk Management papers and articles
  • Risk Governance
  • Risk Appetite and Policies
  • Emerging Risks
  • Risks by Product
  • Current Financial Crisis


Regulatory links

Bank of England (BoE) 

Main site

BoE statistics section

Bank of England Financial Stability Reports - excellent analysis of threats to financial stability, providing valuable insight into financial markets

FSA Financial Risk Outlook papers (latterly the Prudential Risk Outlook and the Retail Conduct Risk Outlook) provided similar insights but are more of historical interest now

Prudential Regulatory Authority (PRA)

PRA section of the BoE site 

PRA Handbook

"The Prudential Regulation Authority’s approach to insurance supervision" - April 2013 paper

Financial Conduct Authority

Main site

Conduct of Business Sourcebook (COBS)

FCA Risk Outlook - successor to the FSA Financial Risk Outlook and Retail Conduct Risk Outlook papers covering conduct risks

Bank of International Settlements (BIS)

Main site

Statistics section - with statistics ranging from cross-border lending to house prices to securities market volumes

"Review of the Differentiated Nature and Scope of Financial Regulation" - Basel Committee on Banking Supervision (BCBS) Joint Forum, January 2010. Report analysing key issues arising from the differentiated nature of financial regulation in the international banking, insurance, and securities sectors.

European Central Bank (ECB)

Main site

Statistics section - including short- and long-term interest rate statistics as well as economic statistics

Financial Stability Reviews - as for BoE, these provide valuable insight into market and economic risks

European Banking Authority (EBA)

Main site

Committee of European Banking Supervisers (CEBS) archive

2011 EU-wide stress test results - results of EBA stress tests which give some insight into the soundness of EU banks

European Insurance and Occupational Pensions Authority (EIOPA)

Main site

EIOPA Financial Stability Reports – produced half-yearly

US Treasury

Home Page

Economic updates

US Federal Reserve

Home Page

Statistics - note that a wide range of historical data can be downloaded using the DDP (though this is tricky to use)

Financial Stability Board (FSB)

Home Page

"Key Attributes of Effective Resolution Regimes for Financial Institutions" - FSB, October 2011


General Risk Management papers and articles

"Enterprise risk management - integrated framework" - Committee of Sponsoring Organizations (COSO, 2004)

"Developing Key Risk Indicators to Strengthen Enterprise Risk Management" - December 2010 COSO paper

"A Risk Management Standard" - this standard is the result of work by a team drawn from the major risk management organisations in the UK: the Institute of Risk Management (IRM), the Association of Insurance and Risk Managers (AIRMIC) and the National Forum for Risk Management in the Public Sector (ALARM)

“A common risk classification system for the Actuarial Profession” – 2011 paper by the Risk Classification Working Party of the UK Actuarial profession setting out a generic risk classification system freely available to all risk professionals

"Enterprise risk management: Its origins and conceptual foundation" - Geneva Papers on Risk and Insurance (2001)

"Enterprise-wide risk management and the role of the chief risk officer" - article by James Lam. ERisk, 2000

 PRMIA case studies - of major loss events, identify the key causes and impacts


Insurance Risk Management papers and articles

"Practice note on enterprise risk management for capital and solvency purposes in the insurance industry" - International Actuarial Association, 2008

"ERM for insurance companies - adding the investor's point of view" -  A N Hitchcox, P J M Klumpes, K W McGaughey, A D Smith and N H Taverner. Presented to the Institute of Actuaries, 25 January 2010

"Investigating the development of enterprise risk management in the insurance industry: an empirical study of four major European insurers" - Paper by Madhusudan Acharyya and Johnnie Johnson, 2006

"Insurance criteria: evaluating the enterprise risk management practices of insurance companies" - 2005 paper by Standard & Poors


Pension Fund Risk Management papers and articles

"Entity-wide risk management for pension funds" – Actuarial profession paper, February 2011


Risk Governance

UK Corporate Governance Code and associated guidance - Financial Reporting Council

"Internal Control:Guidance to Directors" (formerly known as the Turnbull Guidance) - Financial Reporting Council, October 2005 

"Thematic Review on Risk Governance - Peer Review Report" - Financial Stability Board, February 2013

EIOPA Guidelines on Systems of Governance, September 2013

"A New Paradigm: Financial Institution Boards and Supervisors" - G30 paper, October 2013

"Corporate Governance in the 2007-2008 Financial Crisis: Evidence from Financial Institutions Worldwide" – paper presented to the American Accounting Association challenging  preconceptions on the effectiveness of corporate governance 

"Governance and risk management in UK insurance companies" - S.P. Deighton, R.C. Dix, J.R. Graham and J.M.E. Skinner (2009)

Walker Review of corporate governance of UK Banking

Actuarial Profession comments to the Walker Review – October 2009 (following on from April 2009 submission)

FSA “Dear CEO” letter on ALM Committees of Banks and other BIPRU firms – with details of best practice observed (while not strictly applicable, it is worthy of consideration by insurers and other non-BIPRU financial institutions)

Background to "Dear CEO" letter on ALM Committees

April 2013 PRA follow-up document


Risk Appetite and Policies

Towers Watson papers on the topic:

"Achieving Near-Real-Time Risk Monitoring" - December 2013

"Another Bite at the Apple: Risk Appetite Revisited" - October 2013

"FSB Principles for an Effective Risk Appetite Framework" - Financial Stability Board, November 2013

July 2013 Consultation Paper

"APRA's view on risk appetite" - September 2012 speech by Ian McLaughlin of the Australian Prudential Regulatory Authority (APRA) which includes amongst other things references to other papers on the topic (page 4, slide 5)

"A review of the use of complex systems applied to risk appetite and emerging risks in ERM practice" - Actuarial Profession paper, November 2011

"Risk Appetite and Risk Tolerance" - Executive Summary of Institute of Risk Management paper, September 2011 (original available on application)

The SYSC section of the PRA Handbook sets out minimum requirements for risk policies which are a useful starting point when developing risk policy.


Emerging Risks

Emerging Risks Surveys and Articles - reports and updates by the Joint Risk Management Section, sponsored by the Casualty Actuarial Society, Canadian Institute of Actuaries, and the Society of Actuaries

"Global Risks 2014" - World Economic Forum, ninth edition of their survey

Towers Watson Extreme Events 2013 survey - canvassing over 30,000 insurance executives on the top 15 risks which concern them

"A review of the use of complex systems applied to risk appetite and emerging risks in ERM practice" - Actuarial Profession paper, November 2011

"The risk landscape of the future" - this 2004 publication by Swiss Re goes beyond the discussion of individual future risks and shows that it is possible both to understand and consciously configure the risk landscape

Climate Change and Resource constraints

"Resource constraints: sharing a finite world. Implications of Limits to Growth for the Actuarial Profession" - January 2013 research report on the long-term impact of climate change and resource limitations such as oil and water (presented along with a related evidence paper).

"Climate Change and Resource Depletion: The Challenges for Actuaries - Review of Litereature 2011" - useful synopsis of papers on climate change and resource constraints

Financial Repression

"The Liquidation of Government Debt" - 2011 BIS paper by Carmen M. Reinhart and M. Belen Sbrancia on financial repression

"Financial repression – what does it mean for savers & investors" - presentation of the Financial repression working party of the Actuarial profession's Finance and Investment Board Publication, December 2013


WHO Global Outbreak Alert and Response Network

See also the Insurance and Demographic Risk links part of this site which has a section on pandemis. I would also recommend "The Viral Storm: The Dawn of a New Pandemic Age" (Nathan Wolfe, 2011) which gives a very good discussion of pandemics and biorisk 


Risks by product

Equity Release

"Equity Release Report 2005: Volume 1 - Main report" by the Equity Release Working Party of the Actuarial profession giving an  overview of equity release

"Equity release report 2005. Volume 2: Technical supplement on pricing considerations"

"Pricing and risk capital in the equity release market" - 2007 Actuarial profession paper

Variable Annuity

"An executive's handbook for understanding and risk managing unit linked guarantees" (Maher et al, 2010) - Actuarial profession paper on market and other risks associate with variable annuities and other unit linked products with guarantees

"Variable annuities" - 2008 Actuarial profession paper giving an overview of variable annuity markets and risks, amongst other things (note there is a separate SIAS paper of the same name)


Current Financial Crisis (2007 - )

The US Financial Crisis Inquiry Commission (FCIC) produced a very detailed, albeit US-focussed, investigation into the financial crisis and its causes.

January 2011 FCIC report - including dissenting statements by members of commission which give a useful, alternative perspective on the crisis

FCIC archive and supporting documents - an invaluable source of information regarding the crisis

"Financial Crisis Response in Charts" - US Treasury, April 2012 giving an update on the cost of bailing out the US financial systems (far less than originally estimated)

"Global financial stability report: Responding to the financial crisis and measuring systemic risks" - International Monetary Fund, April 2009

"Lessons learned from the crisis (Solvency II and beyond)" - Committee European Insurance and Occupational Pension Supervisors (CEIOPS), March 2009

"Guidelines on preparation for and management of a financial crisis" - follow up paper by CEIOPS, March 2009

"A Self-Inflicted Crisis? Design and Management Failures Leading to the Eurozone Crisis" - 2012 paper by the Group of 30

Lord Turner of the FSA produced a number of interesting papers and presentations on the current crisis:

"The Turner Review: A regulatory response to the global banking crisis" - FSA, March 2009

Turner Review Press Conference: Speaking notes and slides for the press - speech by Adair Turner, chairman, FSA. 18 Mar 2009

"The regulation of shadow banking" - Sunday Telegraph article, September 2012

"Lessons learned from the Credit and Liquidity Crunch" - Actuarial Profession Working Party paper, June 2009

Presentation by the Working Party

"Is the 2007 US Sub-Prime Financial Crisis So Different? An International Historical Comparison" - 2008 paper by Carmen Reinhart and Kenneth Rogoff on the parallels between the current crisis with historic crises

"From Financial Crash to Debt Crisis" - follow-up 2011 article by Carmen Reinhart and Kenneth Rogoff on the links between external debt, banking crises and sovereign debt crises

"The devil is in the tails: actuarial mathematics and the subprime mortgage crisis" - 2010 paper by Catherine Donnelly and Paul Embrechts covering model failures during the financial crisis and looking at the failure of AIG in particular

"The Story of the CDO Market Meltdown: An Empirical Analysis" (Anna Katherine Barnett-Hart, 2009) - excellent paper on the causes of the CDO losses during the financial crisis, and in particular the increasing exposure to sub-prime mortgages in the underlying portfolios

"The credit crunch - causes, consequences and cures" - presentation by Roger Bootle to the 2008 UK Actuarial Life Convention, this combined a lucid appraisal of the causes of the credit crunch with a prescient analysis of how the crisis would evolve

Reports into failures of individual banks:

"The failure of the Royal Bank of Scotland" - Financial Services Authority Board Report,December 2011

"'An accident waiting to happen': The failure of HBOS" - UK Parliamentary Commission on Banking Standards Fourth Report, March 2013

FSA 2012 final notice detailing failings at the Bank of Scotland's Corporate division


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