The concepts of Risk Bearing Capacity (RBC), Risk Appetite and Risk Tolerance overlap to varying extents. These concepts are inconsistently deployed as a result of many paradoxes:
•To what extent is an analysis of historical performance usable as a forecast of future financial capacity?
•Why are insurance program aggregate deductibles and / or risk finance levels so different to RBC?
•What are the impediments to aligning RBC to real decision making mandates?
•Appetite and Tolerance definitions and interpretations – review of industry standards; label confusion vs engagement and empowerment
•Alignment to ERM – top risks are "tolerated” despite having exposures that are multiples of RBC / appetite / tolerance
•Improving the predictive value of RBC in context of capital allocation
Volker von Widdern will share insights and experiences to enhance the business relevance of these concepts.
About the Speaker:
Volker von Widdern joined Marsh SA as Director – Marsh Advanced Risk Solutions (MARS) in October 2002 and has established an integrated risk finance, captive advisory, strategic and operational risk consultancy. He is a member of the Marsh SA Board, and serves on various Committees. He is responsible for the risk consulting practices in South Africa and the Middle East.
Volker is responsible for the strategic development of the Middle East risk consulting practices, and is a member of the MRC Global Senior Leadership Group, based in the EMEA region, representing various global projects. He is actively engaged in the development and rollout of the specialist skills sets for various consultancy practices in Southern Africa.
Before joining Marsh, Volker was CEO of Guardrisk, where he led the growth of this life and non-life insurance group from its early stages to becoming a R2 billion group.