Insurance Risk Management Advisory Solutions (IRMAS)

ERM Program Assessment

Insurance companies face continuous demands to

improve risk management capabilities. In a world where
resources are scarce and competing interests create
the need for careful prioritization and planning, insurers
are challenged with determining the desired level of
riskmanagement capabilities and the associated degree of
development effort that is required. Moreover, developing a
business case for acquiring the resources and management
support to develop risk management capabilities to desired
levels is a significant challenge for many companies.
The professionals at KPMG LLP (KPMG) have many years of
experience in assisting insurance companies with defining future
state Enterprise Risk Management (ERM) capabilities, formulating
recommendations, and developing roadmaps and project plans for the
capability building efforts. Information about this key service offering
from KPMG is summarized below.

The Challenges
Evaluating your risk management capabilities against
industry practices, regulatory requirements, and rating
agency expectations to create an understanding of how you
stack up
Defining guiding principles and your target risk management
capabilities to meet future needs of the business
Understanding which risk management disciplines, business
units, and capabilities are in need of remediation

INSURANCE RISK MANAGEMENT ADVISORY SOLUTIONS (IRMAS)

ERM PROGRAM ASSESSMENT

Formulating a structured approach and roadmap for

enhancing risk management capabilities in a timely and
efficient manner
Developing a compelling business case for the investment in
resources for building future state capabilities
Obtaining board and internal audit confidence over risk
management capabilities

2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the
KPMGnetwork of independent member firms affiliated with KPMG International Cooperative
(KPMG International), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG
name, logo and cutting through complexity are registered trademarks or trademarks of
KPMGInternational. NDPPS 200337

The Goals
Providing an assessment of risk management capabilities
to assist the board, senior management, and internal audit
to determine whether risk management capabilities are
adequate to manage the risks of the enterprise

Identification of the risk management disciplines, business

units, and capabilities that need remediation based on
desired future state or agreed-upon risk management
standards

Definition of target risk management capabilities to meet

future needs of the business, including the use of peercompany, regulatory, and rating agency benchmarking

Formulating a structured approach and roadmap for

enhancing risk management capabilities timely and
efficiently

Our Approach
Leverage a knowledge base of lessons learned from
previous engagements, industry leading practices,
regulatory standards, and our understanding of rating agency
expectations
Bring a highly structured yet flexible assessment framework
approach tailored to insurance companies, including the
following risk management capability elements: Governance,
Strategy & Appetite, Policies & Standards, Assessment&
Measurement, Monitoring & Reporting, Data & Tools,
Change Management and Performance Management

INSURANCE RISK MANAGEMENT ADVISORY SOLUTIONS (IRMAS)

ERM PROGRAM ASSESSMENT

Tailor the assessment approach to the entire enterprise, a

business unit or entity, and a risk type (e.g., operational risk,
credit risk, market risk, etc.)
Use a five-level maturity capability continuum for each of
the eight risk management capability elements, which
can be used for benchmarking current state and target
state capabilities as well as peer-company capabilities, our
understanding of regulatory requirements and rating agency
expectations

2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the
KPMGnetwork of independent member firms affiliated with KPMG International Cooperative
(KPMG International), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG
name, logo and cutting through complexity are registered trademarks or trademarks of
KPMGInternational. NDPPS 200337

INSURANCE ERM FRAMEWORK:

PROGRAM DEVELOPMENT METHODOLOGY

Current State
Definition

Define Future
State

Gap
Identification

Recommendation
Development

Capability
Building Planning

Execution and
Change Management

Governance
Strategy & Appetite
Policies & Standards
Assessment & Measurement
Monitoring & Reporting
Data & Tools
Change Management
Performance Management

Our Team
A senior team leadership with deep, relevant skills.
Our senior team is a seasoned group of professionals with
both industry experience as Chief Risk Officers and Chief
Actuaries as well as many years of professional services
experience assisting insurers developing ERM capabilities.
A global team with multidisciplinary experience. We can
deliver a talented multidisciplinary team from around the
globe to assist companies with developing risk management
capabilities and reviewing and assessing your insurance risk
management program on a global scale. Our team includes

INSURANCE RISK MANAGEMENT ADVISORY SOLUTIONS (IRMAS)

ERM PROGRAM ASSESSMENT

specialists from a variety of disciplines such as Enterprise

Risk Management, insurance risk, market risk, credit risk,
actuarial, reinsurance, hedging, modeling and finance
professionals, and global insights on operational risk.
A practical and well-established approach. Technical knowledge
and both industry-based and advisory-focused experience are
important, but quality of delivery is equally important. We have
a tried and tested approach and a demonstrated track record of
efficient, quality delivery on our projects.

2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the
KPMGnetwork of independent member firms affiliated with KPMG International Cooperative
(KPMG International), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG
name, logo and cutting through complexity are registered trademarks or trademarks of
KPMGInternational. NDPPS 200337

Contact us
For more information on KPMGs Insurance Risk Management Advisory Solutions, or to
arrange an in-house presentation, please contact one of the representatives listed below
orvisit the KPMG Insurance Web site at http://www.kpmg.com/US/en/industry/insurance.
Carl Groth
Managing Director
T: 917-324-4150
E: chgroth@kpmg.com
Diana Calvo
Director
T: 347-724-4684
E: dmcalvo@kpmg.com
Michelle Cercone
Director
T: 404-987-4495
E: mcercone@kpmg.com
Neeta Pimpale
Director
T: 973-912-6723
E: npimpale@kpmg.com
Asheet Ruparelia
Director
T: 917-715-0143
E: asheetruparelia@kpmg.com

The information contained herein is of a general nature and is not intended to address the circumstances
of any particular individual or entity. Although we endeavor to provide accurate and timely information,
there can be no guarantee that such information is accurate as of the date it is received or that it will
continue to be accurate in the future. No one should act upon such information without appropriate
professional advice after a thorough examination of the particular situation.

kpmg.com

2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMGnetwork of
independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and cutting through complexity are
registered trademarks or trademarks of KPMGInternational. NDPPS 200337