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Role of CRO Forum in India

In CRO, Insurance, Risk Management on February 26, 2016 at 3:57 pm

 

This blog is in continuation from my previous blog ‘Do Indian insurance market need a professional CRO forum?’. Indian insurance market essentially needs a Chief Risk Officer (CRO) Forum to set new standards of professional practices. Most of the insurance companies in India are head-quartered in different cities. A CRO forum can bring together geographically spread talent and knowledge of CROs of various insurance institutions to benchmark good risk management practices. The overall aim is to promote robust risk management practices within insurance industry.

Most of the academics and practitioners such as Anette Mikes, Robert Kaplan (Professors from Harvard University) and James Lam (Famous Risk Practitioner and first CRO) in risk management area claimed that risk is evolving and need to be discussed. A famous Professor from MIT Peter Senge provides insights upon the stages of learning. He defined advanced stage of learning of experts is through discussion and participation.

 

At beginning level, the role of CRO Forum in India could be:

  1. To promote best practices in risk management to enhance business
  2. To discuss issues and challenges in dealing with risk and risk based decision making
  3. To provide insights on emerging and long-term risk
  4. To discuss regulatory shifts and implications
  5. Involves a theme based monthly learning and discussion eg: Fraud Control, risk reporting etc.

At later stage, A CRO forum may involve publication of white papers, special issues and risk based discussions.

Essentially, forming a CRO forum is a forward looking and proactive approach for the industry to spread awareness of emerging and complex risks and to enhance overall risk based capacity of the industry. The process can be started with five steps approach:

‘Identify’: The list of risks insurance companies are facing

‘Prepare’: A well discussed and repeatable plan for the risks faced

‘Capability’: Understand your industry capability to handle those risks

‘Detect’: A continuous monitoring plan to detect and monitor the risk

‘Share’: Sharing the risk learning (theme based) within the group every month

Kindly share your view points.

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