Monday, 18 August 2014

ORSA - Institute of Risk Management special interest group

Of course while I spent the last couple of months topping up my tan in, errrrr, the Isle of Man, some of the guys in the UK and further afield have been building up an endeavour-flavoured sweat on some of the more malleable elements of Solvency II preparation.

Raining 'Mann' - Glorious Manx summer
The IRM as ever have kept the ball rolling, in particular hosting an ORSA session last month. While you can pick your way through the guest speaker presentations for ideas and comfort (one company specific, one consultant generic, and one which S&ST/RST fans might like as a sense check), I was much more interested in the attendee survey.

A whopping 34 replies came in, via which the attendees have delivered a reasonable ORSA landscape mock-up, which may help some of you get matters shuffled in your priority lists, given where your peers claim to be.

I noted in particular;
  • ORSA Process overwhelmingly run by the Risk functions (over 90%)
  • Just over half going for annual frequency, the rest (who responded) naturally more frequent - doesn't instinctively feel representative, but not all of the smaller firms would send someone down to this!
  • Around two-thirds have their "Reports" at 50 pages or less - if we assume that by "report" we mean Supervisory as well as Internal, the PRA won't be too chuffed with that given their comments at the December industry seminar.
  • Only a third have submitted draft ORSA Reports to the PRA and received feedback
  • Coverage of emerging risk appears to be an area which not only do respondees think is lacking, but has received critical feedback from the PRA
That half have used external consultants in their ORSA work to-date is certainly no surprise. I'd be worried if that consultancy had more than a year's dust on it though, so think hard before you start submitting your 2014 gear!


  1. Good to have you back, missed your insights.

  2. Good to be back Owe - I enjoyed my break, but my children are too noisy for me to stay at home!