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Atlas Insurance PCC Malta | Protected Cells

Atlas Insurance PCC Malta | Protected Cells | Risk  Management | Scoop.it
Atlas Insurance PCC in Malta gives foreign promoters the opportunity to own their own EU insurance or risk financing captive vehicle avoiding fronting requirements. Protected cells typically require less capital & cost than standalone companies.
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Top five business flaws that could lead to a corporate scandal

Top five business flaws that could lead to a corporate scandal | Risk  Management | Scoop.it

Five business flaws serve as warning signs of a poor and potentially damaging culture, which could lead to corporate scandals if left unaddressed, a joint report by the International Corporate Governance Network (ICGN); ICSA: The Governance Institute; and the Institute of Business Ethics (IBE), has found. The five warning signs were derived from a workshop of senior regulators, investors and company directors and executives, who discussed how businesses could spot early signs of weak culture in the wake of the Volkswagen emission scandal.


The report calls on businesses to watch out for and act on the following warning signs:

1) high levels of corporate stress

2) flawed remuneration policies

3) complex legal structures

4) poorly implemented takeover

5) lax financial discipline


Other drivers of bad behaviour are employees not being reprimanded for breaking minor rules, such as taking office supplies home, which could over time lead to increasingly larger rules being broken. However, corporate stress was deemed a significant contributing factor to poor corporate culture, often brought on by “an excessive focus on short-term financial targets”.

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Asymmetry: A Revised Mental Model for Enterprise Risk

Asymmetry: A Revised Mental Model for Enterprise Risk | Risk  Management | Scoop.it

Whether you turn on your television or read your iPad, smartphone or other mobile device, the cacophony of news around us has become more confusing and unsettling.  The never-ending wars in the Middle East, cybersecurity, global market rallies and capitulation, natural disaster, corporate layoffs… you get the picture!

You may want nothing more than a return to a quieter time when things were better!  But the truth is, the past is seldom as we remember it or something we can return to.  We filter out the bad and remember the good.  Our ability to move forward in the face of uncertainty depends on our brain’s ability to discount the negative and remain optimistic for the future.

Welcome to the new world of Asymmetric Risks!

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Why Compassion Is a Better Managerial Tactic than Toughness

Why Compassion Is a Better Managerial Tactic than Toughness | Risk  Management | Scoop.it

Stanford University neurosurgeon Dr. James Doty tells the story of performing surgery on a little boy’s brain tumor. In the middle of the procedure, the resident who is assisting him gets distracted and accidentally pierces a vein. With blood shedding everywhere, Doty is no longer able to see the delicate brain area he is working on. The boy’s life is at stake. Doty is left with no other choice than to blindly reaching into the affected area in the hopes of locating and clamping the vein. Fortunately, he is successful. Most of us are not brain surgeons, but we certainly are all confronted with situations in which an employee makes a grave mistake, potentially ruining a critical project. The question is: How should we react when an employee is not performing well or makes a mistake?

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Risk Management – Lessons from the Last 30 Years

Risk Management – Lessons from the Last 30 Years | Risk  Management | Scoop.it

30 years ago, the space shuttle Challenger broke apart 73 seconds into its flight, leading to the tragic deaths of its seven crew members.As the spacecraft disintegrated over the Atlantic Ocean, the paradigm of risk management shifted from reactive to proactive. Taxonomies, frameworks, methodologies and tools developed rapidly to meet this need to manage risk proactively. And while, nearly 30 years later, we are more confident through the evolution of risk management that has taken place to answer the reactive question, “Are we riskier today than we were yesterday?” we face the stark realization that we are not truly able to answer an even more important question: “Will we be riskier tomorrow than we are today?”

Realizing a collective vision to have informative dashboards that look forward, providing confidence in assessments of how risky things are that lie ahead, is the work of the current generation. That makes today an exciting time for risk management. Great progress has been made, but as we reflect today, we know so much more can and must be done.

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How an executive risk leader could help firms avoid the next big crisis

How an executive risk leader could help firms avoid the next big crisis | Risk  Management | Scoop.it

Corporates should appoint an executive risk leader to advise board level strategy.
The report Tomorrow’s Risk Leadership: delivering risk resilience and business performance, was developed by global business think tank Tomorrow’s Company in collaboration with Airmic and Good Governance Forum members Chartered Institute of Management Accountants, InterContinental Hotels Group (IHG), Korn Ferry, PwC and Zurich.

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IFAC Thought Paper on Integrating Risk Management

IFAC Thought Paper on Integrating Risk Management | Risk  Management | Scoop.it

Most people in an organization are primarily focused on doing their job well. And this is how it should be, as the main objective of an organization is not to manage risk, nor to have controls, but to ensure that it makes the best decisions and achieves its objectives. If employees were obliged to implement a risk management and internal control system around their activities it would merely be seen as a distraction. Establishing an explicit connection between how risk affect their jobs and their objectives, however, makes them more inclined to manage the related risk as well.
Unfortunately, most standards, frameworks, and guidelines still treat risk management as a separate process or a non-integrated, stand-alone function, rather than as an integral part of managing an organization, including strategic and operational planning and decision making, execution, monitoring, review, and continuous improvement.
IFAC has developed a thought paper, with the support and guidance of our Professional Accountants in Business Committee, From Bolt-on to Built-in—Managing Risk as an Integral Part of Managing an Organization. The paper demonstrates the benefits of properly integrating the management of risk and provides guiding principles and a practical example on how such integration can be achieved.

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The strategic importance of risk managing the supply chain

The strategic importance of risk managing the supply chain | Risk  Management | Scoop.it
The corporate risks posed by a potential supply chain failure are leading more risk managers to keep a close handle on their supplier relationships and they are finding, in some instances, that significant gains can be made in the process.
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Humans Created an Earthquake Crisis. Here's How

Humans Created an Earthquake Crisis. Here's How | Risk  Management | Scoop.it

In the last few years, Oklahoma has become one of the most seismic places on the planet. Last year, there were almost 6,000 earthquakes, 900 of which were magnitude 3 or higher, according to the U.S. Geological Survey (USGS). Scientists say the increase is due to hundreds of saltwater disposal wells around the state that pump brackish water that comes up naturally during drilling back underground.

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Carphone Warehouse data breach hits 2.4 million UK customers

Carphone Warehouse data breach hits 2.4 million UK customers | Risk  Management | Scoop.it

Carphone Warehouse suffered a significant data breach from a “sophisticated cyber attack” on its systems, and has resulted in the name, address, date of birth and bank details of up to 2.4 million of its customers being compromised. The encrypted credit card details of a further 900,000 may also have been accessed.

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Cyber tricks

Cyber tricks | Risk  Management | Scoop.it

Richard Thwaite, director of technological advisory at Chaucer Consulting, has also worked for UBS and London’s Metropolitan Police service. In a poacher-turned-gamekeeper twist, he advises Chaucer on what CIO’s are looking for to enable them to deliver technology more effectively, including security systems. In this article he gives us the benefit of his experience on some of the most common – and some of the most audacious – cyber tricks he’s encountered. As Thwaite says: ‘The technology often isn’t the issue, however advanced it is. The weak link is, inevitably, human behaviour.’

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How can firms reduce the effects of currency fluctuations?

How can firms reduce the effects of currency fluctuations? | Risk  Management | Scoop.it

The UK’s most successful firms operate in an increasingly international marketplace. With continued uncertainty surrounding currencies, firms are battling to remain competitive in the UK’s largest export market. With currency depreciation, businesses must act now to mitigate currency risks and increase the agility of their supply chains to secure a profitable future.

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Promising future for PCCs post-Solvency II

Promising future for PCCs post-Solvency II | Risk  Management | Scoop.it

Protected Cell Companies (PCCs) are a viable alternative to smaller captives struggling to deal with Solvency II, delegates attending CRE's recent Malta International Risk Congress heard.

While bigger captives will survive under Solvency II smaller entities 'might think outside of the box and see if cells might be more apt given the new regulatory framework'.

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TED - Fighting viruses, defending the net

TED - Fighting viruses, defending the net | Risk  Management | Scoop.it
It's been 25 years since the first PC virus (Brain A) hit the net, and what was once an annoyance has become a sophisticated tool for crime and espionage. Computer security expert Mikko Hyppönen tells us how we can stop these new viruses from threatening the internet as we know it.
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How risk managers can influence the C-suite

How risk managers can influence the C-suite | Risk  Management | Scoop.it

As companies’ risk profiles change ever more quickly and receive more attention from the board, how can risk managers add more value to boardroom decision making? 

As the importance of organisational risk management grows, risk managers are often asked to contribute advice and ideas on a host of complex (and often interconnected) threats, encompassing political, economic, technological, governmental, legal and regulatory risks.

This is compelling risk managers to revise their skill sets and reinvent their roles. At the same time, boards are increasingly calling for greater engagement from executives involved in risk oversight.

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The Debate: Does Europe need more PCC legislation?

The Debate: Does Europe need more PCC legislation? | Risk  Management | Scoop.it

With the implementation of Solvency II in the EU, and other domiciles following with more risk based regulation and capital modelling, the obvious economies of scale benefits have caused worldwide growth in the use of Protected Cell Companies (PCCs) and cells within such companies versus standalones. It therefore comes as no surprise that Luxembourg is considering joining in and introducing its own PCC legislation.

This is a further endorsement to protected cell legislation, and Gibraltar and Malta have been providing EU PCC solutions for over a decade. 
It will take some time for Luxembourg to get through the learning curve and build the required expertise. This is less complex now that we have certainty on the application of Solvency II to PCCs. 


PCC legislation would open Luxembourg’s doors to smaller firms seeking this reinsurance captive route. Malta on the other hand has traditionally been more popular with direct writing insurers, captives and cells, even though it also hosts a number of reinsurance cells.

Continental Europe’s take up of captive solutions with medium sized enterprises is slowly gaining ground but lags behind the US and UK. Luxembourg joining the list of PCC domiciles can help increase recognition of the opportunities protected cells provide.

I expect that such increased interest and awareness will actually help Malta and Gibraltar, as more entities consider the cell captive and cell insurer routes and assess their options.

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The ransomware that knows where you live

The ransomware that knows where you live | Risk  Management | Scoop.it

A widely distributed scam email that quotes people's postal addresses links to a dangerous form of ransomware.

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The resurgence of the onshore captive

The resurgence of the onshore captive | Risk  Management | Scoop.it

Research shows that companies are increasingly looking to onshore domiciles when establishing new captives as the offshore world continues to be subject to greater regulatory scrutiny.

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Singapore Inc: A study in enterprise risk management

Singapore Inc: A study in enterprise risk management | Risk  Management | Scoop.it

Mr Lee Kuan Yew's governance of Singapore was often likened in the American and other international press to the way a company is managed. Perhaps that may have been in part due to how Chairman and CEO Lee had challenged his management team to deliver results. One area in particular was in the implementation of an effective enterprise risk management (ERM) process to accomplish Singapore Inc's strategic goals and operational objectives.

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Risk Not in VaR: A Perspective with Some Practical Examples

Risk Not in VaR: A Perspective with Some Practical Examples | Risk  Management | Scoop.it

The Value at Risk (VaR) framework is now an industry standard to measure the risk associated with a given portfolio of financial instruments. VaR finds favour because it is easy to understand. It is simply one number which gives you a rough idea about the extent of risk in the portfolio. Value at Risk is applicable to stocks, bonds, currencies, derivatives, or any other assets with price. This is why banks and financial institutions like it so much – they can compare profitability and risk of different units and allocate risk based on VaR (this approach is called risk budgeting).
While VaR has found favour in part because it is easy to understand, it is simplification of real world. The main behaviour of the real world is captured but some features are discounted to avoid making the model too complex and also because historically they never played a crucial role.

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The Modern CRO in the Insurance Market

The Modern CRO in the Insurance Market | Risk  Management | Scoop.it

The International Institute of Risk Management defines the modern CRO as “an executive-level individual responsible for an organisation’s strategies, objectives, and techniques for handling all types of risk facing the enterprise. This is a holistic approach to risk that takes into account the company’s growth, profit, and revenue.”

 

It only takes a conversation with a handful of firms to realise how far CRO’s have already progressed in fulfilling this vision of the future. Not so long ago, Risk Management was a considered by many to be an exercise undertaken to satisfy the requirements of the UK regulator. The definition is perhaps wider than has been seen during Solvency II implementation and to understand the current expectations, one has to look at how the CRO evolved within an Insurance organisation.

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Aon’s Global Risk Management Survey reveals some surprises in risk ranking

Rory Moloney, CEO of Aon Global Risk Consulting, reviews the results of the Global Risk Management Survey, the “Risk Issues” facing companies today, and how they are affecting the role of risk manager. The Top 5 Global Risks included: Brand and Damage to Reputation, Economic, Recovery, Regulatory Change, International Competition and Talent.  Cyber Risk and Third Party Liability and Property Damage have moved into the Top 10 biggest global risks.  There is an increase in “connectivity” within the Top 10 Risks.

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Going beyond the limits of current tsunami models to study impact on land

Going beyond the limits of current tsunami models to study impact on land | Risk  Management | Scoop.it
All of us would like to protect ourselves from tsunamis, but the task is not so easy, says earthquake engineer Tiziana Rosetto, partly because the movement of these earthquake-triggered waves is hardly understood and difficult to predict.
Via Lee Coppack
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Lee Coppack's curator insight, July 25, 2015 7:19 AM

The modelling of the effect of tsunami waves on land is difficult because of the multiple variables involved. This research is a new approach. 

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Third party risks could result in losses of up to 10 times the regulatory fine

Third party risks could result in losses of up to 10 times the regulatory fine | Risk  Management | Scoop.it

Negative effect on share price could be an average drop of 2.55% but risk management has potential to return 4-5% equity. Regulatory action and reputational damage arising from third party actions could cost organisations’ shareholders an average of 10 times the size of the fine itself as the market value of the company is affected, according to Deloitte

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Antivirus software is not enough to prevent a cyberattack

Antivirus software is not enough to prevent a cyberattack | Risk  Management | Scoop.it

The New York Times' antivirus software failed to prevent 44 out of 45 strands of malware that penetrated its systems during a four-month attack by Chinese hackers.That's a stunning wake-up call to people and businesses who think they are fully protected by their antivirus software.

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