The convergence of multiple pressures is posing acute challenges for CFOs and CROs in many financial firms. In insurance, solvency initiatives are expected to occupy the greatest time and resources of executives. What’s more, low interest rates are causing policy lapse ratios to vary sharply from actuarial projections.
Where do these challenges leave insurers?
Many are rethinking their approach to risk management. Now, more than ever, companies are realizing how critical coordination between risk and finance is. In fact, more than 90 percent of the 17 financial firms we surveyed are either currently implementing or planning better integration of risk and finance processes over the next two years.
In today’s new risk era, the CFO-CRO partnership can promote a more effective, integrated approach to risk management, while driving operational efficiencies. Over the next few weeks, I’ll review our analysis from more than 1,400 respondents on how their firms have been changing the way the risk and finance functions work together. I’ll look at the different techniques firms are using to enhance the CFO-CRO partnership, the potential benefits and the lessons learned.
Join me next week when I examine the new role for risk in insurance. In the meantime, to learn more download Rethinking Risk in Financial Institutions: Making the CFO-CRO Partnership Work (PDF; opens in a new window).