scholarly journals The current demand for the insurability of liability for damage to the natural environment

2009 ◽  
Vol 55 (No. 1) ◽  
pp. 33-39
Author(s):  
E. Vávrová
Keyword(s):  
Risk Management ◽  
Natural Resources ◽  
Natural Environment ◽  
Solvency Ii ◽  
Environmental Damage ◽  
The European Union ◽  
Natural Conditions ◽  
Enterprise Risk ◽  
Potential Risks ◽  
Potential Damage

Since 2004, the basic document which has governed liability for damage to the natural environment in the European Union is the Environmental Liability Directive No. 2004/35/EC, as amended by the subsequent regulation No. 2006/21/EC. The main purpose of the legislation was to ensure that the entity responsible for the damage pays all costs for rectifying its consequences. If it concerns damage to natural environment, the operator must undertake measures for rehabilitation, replacement and regeneration of the damaged natural resources. The primary replacement, which returns the damaged natural resources to their original state, may be differentiated from complementary replacement as compensation in the case in which the primary replacement has not provided an adequate reparation, and finally compensatory replacement – compensation for the temporary loss of natural conditions. This paper aims at an analysis of the possible means for eliminating risks due to the liability for environmental damage caused by the actions of an operator whose activities potentially threaten natural environment and may cause the biodiversity damage. Risks are assessed with regard to the risk insurability criteria for potential damage to the natural environment. The importance of risk management is stressed in the sophisticated form known as the Enterprise Risk Management. Risk management is becoming increasingly important as a part of the Solvency II concept, currently in preparation, whose first and second pillars accentuate risk management in financial institutions and the consistent quantification of the obvious, hidden and potential risks.

scholarly journals EU approach to the insurability of the liability for damage to the natural environment

2009 ◽  
Vol 57 (6) ◽  
pp. 369-376
Author(s):  
Eva Vávrová
Keyword(s):  
Risk Management ◽  
Natural Environment ◽  
Service Sector ◽  
Solvency Ii ◽  
Environmental Damage ◽  
Research Project ◽  
The Czech Republic ◽  
Enterprise Risk ◽  
Potential Risks ◽  
Potential Damage

This paper proposes an analysis of the possible means for eliminating risks due to liability for environmental damage caused by the actions of an operator whose activities potentially threaten the natural environment and may cause biodiversity damage. Risks are assessed with regard to risk in­su­ra­bi­li­ty criteria for potential damage to the natural environment. The importance of risk management is stressed in the new form known as Enterprise Risk Management. Risk management is becoming increasingly important as part of the Solvency II concept, currently in preparation by European Commission, whose first and second pillars accent risk management in financial institutions and con­sis­tent quantification of existing, hidden and potential risks.This paper focuses on an analysis of specific presumptions about the insurability of risk as concerns environmental insurance. The paper was written as part of research project MSM 6215648904, carried out by the Faculty of Business and Economics, under the name “The Czech Republic in the pro­ces­ses of integration and globalization, and the development of the agriculture and service sector in the new conditions of the integrated European market”, following the goals and methodology of the research project.

Enterprise risk management and Solvency II: the system of governance and the Own Risk and Solvency Assessment

2020 ◽  
Vol 21 (4) ◽  
pp. 317-332 ◽  
Author(s):  
Pablo Durán Santomil ◽  
Luis Otero González
Keyword(s):  
Risk Management ◽  
Insurance Industry ◽  
Solvency Ii ◽  
Enterprise Risk Management ◽  
Insurance Companies ◽  
Legal Form ◽  
Content Type ◽  
Enterprise Risk ◽  
Solvency Assessment

Purpose The purpose of this paper is to analyze how enterprise risk management (ERM), the system of governance and the Own Risk and Solvency Assessment (ORSA) have been boosted with the entry of Solvency II. Design/methodology/approach For this analysis, the authors have undertaken a survey of chief risk officers (CROs) working in Spanish insurance companies. Findings The results show that Solvency II has definitely promoted ERM in the European insurance industry and improved the system of governance of the insurance companies, and that the perceived value of the ORSA for the companies is higher than the cost. It is clear that the quality of ERM implemented by companies is higher in those that face more complex risks and with greater interdependencies – that is, larger companies, foreign insurers and insurers with several lines of business – but is unaffected by the legal form of the entity (mutual/corporation). Originality/value This study conducts primary research with surveys of CROs and develops a measure of the quality of ERM implemented by insurance companies.

Enterprise risk management for health insurance from an actuarial perspective

2012 ◽  
Vol 17 (2) ◽  
pp. 259-314 ◽  
Author(s):  
G. C. Orros ◽  
J. Smith
Keyword(s):  
Risk Management ◽  
Health Insurance ◽  
Solvency Ii ◽  
Enterprise Risk Management ◽  
Insurance Companies ◽  
Enterprise Risk ◽  
The Face ◽  
Known Unknowns ◽  
Over Time ◽  
Health Insurers

AbstractThis paper focuses on Enterprise Risk Management (ERM) and strategic business management for health insurance companies in our world of ‘unknown unknowns’ and the emergence of unexpected risks over time. It illustrates how Chief Risk Officers (CROs) can focus on ‘risk and opportunity management’ through an ERM framework, and thereby balance risks against opportunities, whilst being resilient against ‘unknown unknowns’ and their emergence over time as ‘known unknowns’ and ‘known knowns’. The paper has been designed to meet the broad requirements of health insurers that would like to implement an ERM framework for the effective risk management of their health insurance lines of business. Risk management for health insurers in the context of Solvency II and broader European Commission regulatory requirements is also discussed. The authors discuss how insurers can develop and apply risk management to build resilience in the face of the storms and shocks that may lie ahead.

scholarly journals Governance and Risk Management in United Kingdom Insurance Companies

2009 ◽  
Vol 15 (3) ◽  
pp. 503-556 ◽  
Author(s):  
S. P. Deighton ◽  
R. C. Dix ◽  
J. R. Graham ◽  
J. M. E. Skinner
Keyword(s):  
Risk Management ◽  
United Kingdom ◽  
Solvency Ii ◽  
Insurance Companies ◽  
Successful Implementation ◽  
Regulatory Requirement ◽  
Whole Process ◽  
Enterprise Risk ◽  
History Of ◽  
The Right

ABSTRACTFor some while there has been a growing awareness from both internal and external stakeholders that the governance and risk management in United Kingdom (U.K.) insurance companies needed to be enhanced. The proposed European Union Solvency II Directive makes this very explicit and the current economic turmoil has put a much stronger emphasis on the whole process: it is being seen as the right thing to do, rather than simply a regulatory requirement. In this paper, we set out the background to and recent history of governance for U.K. insurance companies, and consider how enterprise risk management can bring together the various control frameworks needed to support that governance. Whilst no two companies are the same, and hence the solutions to these issues will vary, there are several common themes linked to successful implementation. Similarly, various barriers to success are identified, together with solutions to resolve them.

scholarly journals Analisis Manfaat Ekonomi dan Identifikasi Risiko Investasi Sistem Treasury Dealing Room (TDR): Studi Kasus Direktorat Jenderal Perbendaharaan

2018 ◽  
Vol 3 (3) ◽  
pp. 202-218
Author(s):  
Bagus Utomo
Keyword(s):  
Risk Management ◽  
Economic Benefits ◽  
Enterprise Risk Management ◽  
It Business Value ◽  
Integrated Framework ◽  
Enterprise Risk ◽  
Directorate General ◽  
Potential Risks ◽  
The Cost ◽  
Total Project

Minister of Finance has authority to manage state finances covering cash and securities. To increase Non-Tax State Revenue and reduce the cost of funding, the Directorate General of Treasury build Treasury Dealing Room (TDR). The Budget for information system/information technology (IS/IT) is 74% of the total project budget. This study aims to analyze economic benefits of TDR system investment. Generic IS/IT business value table is used to identify the benefits for the organization and digital prosperity framework for the country. Systems dynamics is used to analyze the interrelationship between business benefits to obtain key business benefits. Quantification is based on IT metrics and assumptions on calculating the value of TDR funds. This research also identifies risks using COSO Enterprise Risk Management-Integrated Framework. Thematic analysis is used to process qualitative data. The results show that investment of TDR systems can reduce the cost of money (RCO-09), increasing revenue caused by increasing business capacity (IRE-01) and widening market segment (IRE-04). The total value of benefits for five years amounted to Rp655.294.873.957. The benefits for the country are increasing efficiency and a larger and more efficient market. Eleven potential risks covering regulatory, coordination, technology, and human resources aspects are obtained.   Menteri Keuangan bertugas mengelola keuangan negara yang mencakup kas dan surat berharga. Untuk meningkatkan Penerimaan Negara Bukan Pajak serta mengurangi biaya menghimpun dana, Direktorat Jenderal Perbendaharaan berinisiatif membangun Treasury Dealing Room (TDR). Anggaran investasi sistem informasi/teknologi informasi (SI/TI) mencapai 74% dari total biaya proyek. Penelitian ini bertujuan menganalisis manfaat ekonomi investasi sistem TDR. Metode yang digunakan untuk identifikasi manfaat bisnis bagi organisasi adalah tabel manfaat bisnis SI/TI generik, sedangkan kerangka pikir kesejahteraan digital digunakan untuk identifikasi manfaat bagi negara. Pendekatan system dynamics digunakan untuk menganalisis keterkaitan antar manfaat bisnis sehingga diperoleh manfaat bisnis utama. Kuantifikasi dilakukan berdasarkan metrik TI dan asumsi-asumsi perhitungan nilai dana TDR. Penelitian ini juga melakukan identifikasi risiko menggunakan COSO Enterprise Risk Management-Integrated Framework. Analisis tematik digunakan untuk mengolah data yang bersumber dari wawancara, diskusi, dan studi dokumen. Hasil penelitian menunjukkan bahwa investasi sistem TDR mampu mengurangi biaya uang/bunga pinjaman (RCO-09), meningkatkan pendapatan yang disebabkan oleh meningkatnya kapasitas bisnis (IRE-01) dan segmentasi pasar (IRE-04). Total nilai manfaat ekonomi selama lima tahun sebesar Rp655.294.873.957. Manfaat investasi sistem TDR bagi negara yaitu meningkatkan efisiensi dan pasar yang lebih luas dan efisien. Berdasarkan identifikasi risiko, diperoleh sebelas potensi risiko yang mencakup aspek peraturan, koordinasi, teknologi, dan Sumber Daya Manusia.

scholarly journals IMPLEMENTATION PROBLEMS OF THE ENVIRONMENTAL LAW NORMS IN THE INDUSTRIAL REGIONS OF RUSSIA (THE CASE OF KUZBASS)

2017 ◽  
Vol 2017 (4) ◽  
pp. 77-87
Author(s):  
Тимур Невзоров ◽  
Timur Nevzorov ◽  
Дмитрий Манаков ◽  
Dmitriy Manakov
Keyword(s):  
Environmental Policy ◽  
Natural Resources ◽  
Coal Mining ◽  
Natural Environment ◽  
Economic Activity ◽  
Environmental Law ◽  
Legal Regulation ◽  
Environmental Damage ◽  
Ecological Situation ◽  
Legal Concept

<p>In the context of the Year of Ecology in Russia, much attention has been drawn to the significant extent to the implementation of the state environmental policy related to the problems of the country’s environmental development as a whole, as well as to ensuring environmental safety and conservation of biological diversity, both in the country and in the regions. The authors use official assessments of the environmental situation in the Kemerovoregion, which is characterized by a high level of anthropogenic impact on the natural environment, the social sphere, the public health and the significant environmental consequences of economic activity.<strong></strong></p><p>Therefore, the paper features the implementation of environmental law in an industrialized region. It analyses a number of violations caused by the economic activity in the region. First of all, they are related to the current growth rates of coal mining in Kuzbass, as well as with the predominance of open coal mining, which leads to intensive development of the poor ecological situation in the region.</p><p>The authors consider examples of legal regulation of relations caused by the formation of mechanisms for the application of environmental policy, in the process of exercising the competence of controlling and law enforcement bodies in their protection of mineral wealth, land, water, air and forest in the region.</p><p>The article also discusses the «non-exhaustive» use of natural resources as one of the strategic directions of state environmental policy: as a legal concept, as a legal principle, as an obligation of the authorities, and as the right and duty of rightholders (users) of natural resources.</p><p>The article ends with the following statement: in Russian version, the content of environmental policy is distributed among a number of legal acts, which is why it is often difficult to determine and complicated in application.</p><p>A possible solution for the ecological situation in the region should be based on the objectives of environmental policy, determined for different periods (long, medium and short-term). The joint efforts of economic entities and supervisory bodies should be aimed at a radical change in the fight against destruction and contamination with environmental wastes, contaminated wastewater, as well as the elimination of the accumulated environmental damage in general. Finally, there is a need to strengthen the planning in the implementation of environmental policy in order to achieve the volume of production and consumption of both mineral and biological resources of the region that would be adequate to the natural environment. These measures should be equally extended to the activities of industrial facilities and the population in all territories of the region.</p>

scholarly journals Does Good Corporate Governance Mediate Risk Management Implementation and Financial Performance of Indonesian Commercial Banks?

2021 ◽  
Vol 56 (3) ◽  
pp. 457-472
Author(s):  
Haryetti Haryetti ◽  
Andewi Rokhmawati
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Performance ◽  
Banking Sector ◽  
Risk Mitigation ◽  
Enterprise Risk Management ◽  
Good Corporate Governance ◽  
Enterprise Risk ◽  
Risk Appetite ◽  
Potential Risks

This study examines the effect of risk management implementation on financial performance mediated by good corporate governance in the banking sector. The research design is quantitative research, which employs a mediating regression analysis in which good corporate governance is a mediating variable between risk management implementation and financial performance. By using a purposive sampling technique, this study includes 21 banks listed on the Indonesian Stock Exchange. The research results are that enterprise risk management implementation has a significant positive effect on good corporate governance. Enterprise risk management implementation has no significant impact on financial performance. Good corporate governance has a significant influence on financial performance. Finally, good corporate governance mediates enterprise risk management on financial performance. The contribution of this research is laid on the usage of content analysis to identify what kinds of banks' risks have a potency to expose banks to particular risks, as well as the examination of the role of good corporate governance as a mediating variable of the effect of risk management on financial performance. Banks should explicitly provide some information about the potential risks, risk appetite, risk measurement, and potential risk mitigation. Information on how the Good Corporate Governance responds to the foreseen potential risks is recommended.

scholarly journals Fast remote but not extreme quantiles with multiple factors: applications to Solvency II and Enterprise Risk Management

2011 ◽  
Vol 1 (1) ◽  
pp. 131-157 ◽  
Author(s):  
Matthieu Chauvigny ◽  
Laurent Devineau ◽  
Stéphane Loisel ◽  
Véronique Maume-Deschamps
Keyword(s):  
Risk Management ◽  
Solvency Ii ◽  
Enterprise Risk Management ◽  
Multiple Factors ◽  
Extreme Quantiles ◽  
Enterprise Risk

Integration of the Technical Product Risk Assessment within the ISO 31000 Enterprise Risk Management Concept

2013 ◽  
Vol 633 ◽  
pp. 263-276
Author(s):  
Mirko Djapic ◽  
Predrag Popovic ◽  
Ljubomir Lukic
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Rapid Development ◽  
Enterprise Risk Management ◽  
The European Union ◽  
Global Approach ◽  
Risk Levels ◽  
Holistic Approaches ◽  
Enterprise Risk ◽  
Iso 31000

Throughout the 1990s, the European Union achieved, through introducing the New and Global Approach to technical harmonization and standardization, significant improvements to conformity assessment of products, by integrating safety requirements into the design process. This was achieved through preventative analysis and quantification of risk levels, with the objective of determining the scope of the required safety systems. On the other hand, we have witnessed the rapid development and implementation of holistic approaches to risk management in enterprises, collectively known as Enterprise Risk Management (ERM). Along these lines, this chapter presents the basis of the New and Global Approach, and provides a proposal for the integration of New Approach Directives risk assessment into the holistic approaches of risk management in organizations, such as ERM.

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