Seminar Two, March 20

SEMINAR 2: Operational risk quantification and measurement for insurance companies

8:30 Registration and breakfast
9:00 Regulatory update: operational risk and Solvency II and survey of operational risk in insurance supervision:

Speaker: Andreas (Andy) Jobst, Chief Economist, BERMUDA MONETARY AUTHORITY

10:30 Morning break
11:00 Developing quantification models for insurance companies and capital measurement

Speaker: Donald F. Mango, Global Advisory, GUY CARPENTER & COMPANY, LLC

12:30 Lunch
1:30 Setting operational risk appetite for insurance companies: Defining risk appetite and risk tolerance concepts and their importance in managing risk; Understanding the nature of Operational Risk from a risk appetite (or tolerance) perspective; Challenges with measuring operational risk (deterministic, stochastic, Bayesian approaches); How much risk to take?: Measuring the cost-benefit trade-off; Operational Risk types and Key Risk Indicator; Limit setting, monitoring and reporting:

Speaker: Carl H. Groth, Managing Director Insurance Risk Advisory, KPMG and former Group Chief Risk Officer, TORUS INSURANCE

3:00 Afternoon break
3:30 Demonstrating value to the enterprise

Speaker: Carl H. Groth, Managing Director Insurance Risk Advisory, KPMG and former Group Chief Risk Officer, TORUS INSURANCE

Speaker biography

Andy Jobst is currently Chief Economist of the Bermuda Monetary Authority (BMA). Prior to his appointment he spent the last six years as mid-career economist at the Monetary and Capital Markets Department (MCM) of the International Monetary Fund (IMF). His work focuses on macro prudential policy and risk measurement, capital market issues (esp. structured finance), and financial regulation. As a member of IMF Article IV missions he has been responsible for the financial sector coverage of several large mature and emerging market economies. He has developed and completed the stress tests for the IMF's Financial Stability Assessment Program (FSAP) of Germany, the United Kingdom and the United States. Andy was also one of the main authors of the Global Financial Stability Report (GFSR) and contributor to the Early Warning Exercise (EWE) of the Financial Stability Board (FSB).
Andy has published more than 25 articles in peer-reviewed journals and 10 book chapters. He holds a PhD in Finance from the London School of Economics (LSE).

Carl Groth, Chief Risk Officer, Torus Insurance
Carl is Torus' group Chief Risk Officer reporting directly to the CEO and has over 25 years experience in the insurance industry. As the Chief Risk Officer, Carl is responsible for driving the development and management of Torus' enterprise risk management and Solvency II and equivalent programs to support Torus' business objectives as directed by shareholders and the Senior Management Team.
In this role, Carl's major objective is to help build a risk management infrastructure that can help optimize and protect Torus' current and future earnings, capital and economic value as well as enhance its reputation with key external constituencies. Carl is responsible for working with management and the board to develop the company's overall risk appetite and tolerance levels and the means by which the company controls risk taking within those levels, and ensuring the efficient identification, assessment, measurement, monitoring, and reporting of key risks across the entire enterprise to keep the Board of Directors and executive management apprised of key risks and risk management issues.
Prior to Torus, Carl co-led Deloitte's Enterprise Risk Management Practice for Insurance in the United States and served as a US-based resource to advise companies on Solvency II related issues and readiness. In that role, he helped develop a consulting practice that specialized in assisting companies with building industry leading risk management capabilities in credit, market, underwriting and operational risks, as well as creating capabilities such as, economic capital and risk analytic models, risk governance structures and risk appetite and monitoring methodologies.

Don Mango leads Global Advisory for Guy Carpenter & Company, LLC. In this role, he oversees delivery of advisory services for rating agency, ERM, business intelligence, counterparty risk, Solvency II and capital modeling. Prior to this appointment, Don was chief actuary and head of the firm's Enterprise Risk Management Advisory Practice Group.

Don joined Guy Carpenter in 2006 from GE Insurance Solutions, where he was the Director of Research and Development. Previously, he was the Chief Risk Officer for American Re-Insurance. He also gained traditional pricing and actuarial experience while working at Centre Solutions, Crum & Forster Insurance and Insurance Services Office.

He is the author of numerous actuarial papers, a former Casualty Actuarial Society Board Member and a regular speaker at industry conferences. Don graduated from Rice University with a degree in mechanical engineering.