Insurance and banking business models have continued to grow in complexity over the past 50 years – from simple and local risk exposures — to the current environment of complex and global exposures. Risk management has evolved along with the business model changes, from making individual, transaction-based decisions on a combination of judgment and underwriting criteria, to looking at aggregated portfolios of risk enabled by more robust analytical tools.
While the tools and techniques available to risk professionals have continued to evolve, the interaction model between risk and the business has largely remained the same — an “us vs. them” dynamic.
In the past, risk was present to say “yes or no” to business leaders based on what was seen to be risk’s…
