MODULE 5: ZURICH INSURANCE

Topic

Name

Professor

Institution

Date
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Introduction

Over the past ten years, Zurich Insurance Group was established as the world's top

insurance services provider. It takes tremendous effort and dedication to grow a small firm into a

global organization. Not only did Zurich need to develop an Enterprise Risk Management system

that was groundbreaking in the industry, but they also needed to integrate it with their risk and

return plan. Zurich had the chance to improve on what they are already doing through tactical

improvement and enterprise resource planning (ERP) while also providing its clients, employees,

and sponsorships with industry-leading support on a global scale.

1.) How do Zurich ERM tools help them better understand their existing and emerging risks?

For the organization or stakeholders to understand how to approach a danger effectively,

Enterprise Risk Management apparatuses are focused on reporting and understanding hazards,

regardless of their presence or development. It was a chance for Zurich to use its ERM capabilities

to maintain its competitive edge in the rapidly evolving insurance business. Zurich has established

a standard method for evaluating strategic risks and the possible consequences that these risks may

have on the company as a result of improved risk management procedures. When Zurich shifted its

risk management from an asset-based to the recent ad-risk-based approach, it was a game-changer

for the whole industry. Zurich had the potential to reduce their capital use by more than twenty

percent when they made this adjustment, which they ensured to implement to its benefits. Zurich

recognizes the need to verify the financial soundness of its clients and stakeholders, and it does so

diligently. They will be more protected if anything like a supplier failure occurs due to the systems

they have put in place. Zurich's ERM program was developed because a large portion of the

company has various project designs in place for all of the ridiculous "what ifs," which provides

the company with risk management where a big emergency occurs.

2.) How are Zurich’s risk roles and responsibilities impacting

their risk culture?

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This section of the report irritated me because Zurich is not afraid of taking risks. "The core

qualities expected from an appropriate risk management culture include committed leadership,

dynamic learning from prior errors, perpetual and constructive challenges, an efficient governance

structure with major risk duties and an advantageous acceleration methodology, motivating forces

that reward idea of risk management goals and risk craving in the companies, and motivating

forces which benefit ideas of risk management goals and risk craving in the organizations,"

according to the company's policies (Fraser, 2015). As complicated as that phrase appears, it

conveys a great deal about an organization. It also reminds me of my time spent volunteering with

the Girl Scouts of America. Apart from the fact that Zurich has no fear for risks, they also think

that being prepared and fortunate enough to learn from every experience would result in a well-

balanced company in the future. Girls Scouts was implementing another framework at the time I

started working there. As a result of my training, it was the only way I knew how to do things.

However, for some of the more senior employees, it was difficult to adjust to the training.

Notwithstanding, the system assisted us in tracking client engagements and made it less complex to

escalate situations when necessary, and there was a consistent record of what was happening. It

was, therefore, possible for the Girls Scouts organization to observe how the new tactics were

reducing our conflict with members and clients, which assisted us in increasing our overall

membership. Clients that are upbeat attract more customers.

3.) Why is it important to include a Business Resilience program in your organization’s ERM

program? (If you do not have this experience use a peer review research article for

substitution)

According to TechTarget, "Business resilience is a potential an organization needs to

quickly react to interruptions while maintaining consistent business activities and preserving

employees, resources, and overall equity of the brand." (Rouse, 2014). All businesses need to have

a good Business Resilience program in place and can grasp the workstreams of their workers to be
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successful. A plan must be in place in the case of a catastrophic incident such as the loss of staff or

a big market crash for the company to respond and recover from the situation in the best possible

way.

4.) How is Zurich’s Capital Management program helping their ERM Program?

Zurich Insurance operates in more than 160 different nations, which means that there are a

few unique marketplaces to get used to in general when working there. Zurich employs a small

number of neighborhood regulators who are responsible for balancing the differences in capital and

responsibility that exist between neighborhoods. Zurich works with a select number of high-profile

companies to ensure that client assets are safeguarded, and they carefully monitor their credit status

to ensure that they can continue to operate in the industry. Zurich uses Risk-Based Capital, often

known as RBC, to monitor and maintain its appropriate capital. The National Association of

Insurance Commissioners defines Regulatory Basic Capital (RBC) as "a technique for determining

the basis of virtually every quantitative of capital acceptable for a particular substance to assist it in

carrying out its overall company duties in light of its estimation and risk profile." Risk-Based

Capital is a term that refers to the risk of taking a risk (Risk-Based Capital, 2019).

Conclusion

Zurich has established a stable and industry-leading Enterprise Risk Management program

that is constantly evolving to satisfy the needs of the insurance business and society in the present

day and age. It has proven an extraordinary ability to analyze but also to manage and recover from

changing risk variables. They are a leader in the industry. What is noteworthy is that Zurich has

been given the opportunity to prove that industry-leading organizations can benefit from errors, and

these mistakes can help an organization become more grounded if they are dealt with appropriately

through risk roles and obligations. Zurich seems to have a risk culture that is well-founded and

stable, and this enables them to recover quickly if an incident occurs. Based on its distinctive

culture, capital management systems, risk management, the company will have the chance to stay
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innovative and be a leader in the insurance industry for an extended period in the future.
 Referenc
es:

Fraser, J. (2015). Implementing enterprise risk management: Case studies and best practices.

Hoboken, NJ: John Wiley and Sons.

Rouse, Margaret. “What Is Business Resilience? - Definition from WhatIs.com.” SearchCIO,

TechTarget, Jan. 2014, searchcio.techtarget.com/definition/business-resilience.

“Risk-Based Capital.” Medical Professional Liability Insurance, National Association of

Insurance Commissioners, Jan. 2019,

www.naic.org/cipr_topics/topic_risk_based_capital.htm.