Risk management is poor, say actuaries
The Institute of Actuaries of Australia says recent economic jitters have exposed complacent risk management practices among Australian firms.
It claims recent cases of collapsing shareholder value highlight the importance of proper risk management and the value of actuarial services.
Institute CEO John Maroney told insuranceNEWS.com.au Australia is better insulated from the US subprime crisis than many other countries, but nevertheless faces uncertain times.
“Business here has had a pretty good time over the past four to six years and hasn’t experienced the current volatility we are seeing elsewhere,” he said.
Institute President Greg Martin says problems arise when risks are not understood, are not consistent with the potential reward, or are poorly controlled.
Actuarial services are mandatory in life and general insurance, and Mr Maroney says the insurance sector has relatively advanced risk management structures.
It claims recent cases of collapsing shareholder value highlight the importance of proper risk management and the value of actuarial services.
Institute CEO John Maroney told insuranceNEWS.com.au Australia is better insulated from the US subprime crisis than many other countries, but nevertheless faces uncertain times.
“Business here has had a pretty good time over the past four to six years and hasn’t experienced the current volatility we are seeing elsewhere,” he said.
Institute President Greg Martin says problems arise when risks are not understood, are not consistent with the potential reward, or are poorly controlled.
Actuarial services are mandatory in life and general insurance, and Mr Maroney says the insurance sector has relatively advanced risk management structures.