A Proposed Pattern of Enterprise Risk Management in Insurance Companies

The main purpose of this paper is to present an enterprise risk management for insurance companies in line with establishing Corporate Governance System with supervisory considerations. Therefore, we initially introduce theoretical aspects of international standards and frameworks of Enterprise Risk Management and then we present a theoretical pattern for establishing Enterprise Risk Management System based on Own Risk and Solvency Assessment System in insurance companies. Next, in addition to explain the results of lack of a comprehensive risk management pattern in Iranian insurance companies, we introduce this as one of the main reasons to decrease Solvency Margin Ratio of these companies. Finally, we present a proposed structure and also describe the role and position of this structure in managing insurance companies with supervisory considerations. In this proposed pattern, in addition to explain an interactive approach based on bilateral cooperation between risk management department and other departments of an insurance company, we propose a reporting system based on kind of risk self-declaration.
In this pattern, we first explained interactions and relationships between risk department and other parts of organization based on bilateral cooperation and second proposed a reporting system including self-reporting process.