Lessons from the Financial Crisis for Directors and CEOs of Insurance Companies

The present crisis in global financial markets has created an impression that enterprise risk management (ERM) has failed broadly to protect the safety and soundness of the financial system as well as that of many institutions, including insurance companies.

It is ironic, however, that the crisis is often attributed to failures of risk management in leading commercial banks, investment banks and credit guarantors that were once viewed as pace setters in the use of “best practices” in risk governance and risk management.