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The risearch activities

Insurance Captives Company
Between Risk Management and Tax Planning
started on 10th January 2003

A.RI.M.AS. has great expectations in this research, mainly for indirect developments that can be appreciated by managers, consultants and studious in Italian field of applications.

The Risk Management Rating
started on 8th February 2002

The aim of this research group is to find an indicator able to express the corporate sensitivity on Risk Management and to give a judgment on the way they are managing their risks. In particular the group decided to create a case study to test the project'output " The Risk Management Rating ".

This group was created during the A.RI.M.AS.' Open Meeting Day for partner 2002.


The Open Meeting Day 2002

The Meeting

On 8th February A.RI.M.AS. organised its first OMD, a meeting dedicated to its partners.
The aim of that meeting was to discuss the possible themes of the Association's research for this year and which to sponsor.
During the meeting the participants decided the guidelines of their activity.


To determine a common definition of Risk Management.

Our aim is to give a useful definition of Risk Management activity. Due to some recent events, this term is more an more used to describe different activities of risk control. We believe that there is often a big misunderstanding about it. Many companies and institution diffuse the idea that only Market risk, Credit risk and other financial correlated risks have to be treated by Risk Management: this is not true! Also the Basel Committee focused its attentions on the Operational Risks as the major source of risks for any financial organisation.
Meanwhile, also in the industrial sector there is not a diffuse and common culture on managing risk and this could mean loosing lots of opportunities to increase their potential value;

To study a Risk Management Indicator project plan.

After giving the definitions, we want to measure the corporate' sensitivity to the Risk Management. In particular we decided to create a case study to test our project of creating a Risk Management Indicator.

Were Presents

Mr S. Varagnolo (Partner)
Price WaterhouseCoopers
Mr T. Cabot (Managing Director), Mr M. Abbegg (Property Underwriting Manager),
Mr M. Papano (Manager)
XL Winterthur International
Mr G. Calloni (Global Business Unit Account Director)
AON Nikols
Mr. F. Fasoli (Partner)
Ernst&Young
Mr I. Folgiata (Associate)
SICRA Group
Ing. Bettonica (Associate)
CINEAS

Mrs S. Baccin
Arena Brokers
Mr A.M. Cavadini (Board)
Prof. A. Borghesi (Board)
Mr M. Zanetti (Board)
Mr G. Lucietto ( Board)
A.RI.M.AS.

The use of weather derivatives
started on 25th May 2002

The focus of this research is to study which type of risks can be managed with this financial instrument. To achive this goal, the group started from a quantitative study of the intrument. In this way they exactly know how the weather derivatives work.

Italian standard on risk management

The Italian organization for standardization (UNI) created on last April the first workgroup on 'risk management'. The president of our scientific committee, prof. Antonio Borghesi, represented A.RI.M.AS during the meetings.

The new operative group

On the last december 2002, A.RI.M.AS. met the President of the Central Technical Commission of the Italian organization for standardization (UNI) Engineer Rossi Cairo to discuss what can be done for Italy, because A.RI.M.AS. is working to cover the knowledge gap between the Italian Industry and many other Countries as U.K., U.S.A, New Zealand an Australia.
After two meeting A.RI.M.AS. has been invited to participate at the first operative group with UNI to decide what can be done for creating an Italian standard for Risk Management.

On April 2003, the Italian organization for standardization (UNI) created the first workgroup on 'risk management'. The president of our scientific committee, prof. Antonio Borghesi, represent A.RI.M.AS during the meetings.

The aim of the workgroup is oriented to study the possibilities to introduce also for the Italian societies, some standards on risk management.
In particular the target is:

a) To identify and to study all the standards are actually applied in the countries outside Italy.
b) To investigate the specific requirements for the Italian market in order to have a common meaning of the risk management activity.
c) To understand if can be necessary to translate and publish also in Italy some foreign standards.
d) To understand the specific initiatives to be done by UNI for the Italian market.

The teamwork is composed by representatives of Associations of risk mangers, Professors of Italian Universities, Associations of insurer and reinsures.

The role of A.RI.M.AS.

A.RI.M.AS. is proud to be invited at this first event that can create strong bases to regulate the Risk Management Process helping the Italian environment to have a useful tool for the top management.
The contribution that A.RI.M.AS. can give to the Commission is well related to the researches made by the RMR Group. This research group, who aims to create a risk management indicator, has already worked on common definitions to give to the risk management process.

The risk management culture inside UNI's members

by Dr. Alberto Monteverdi - Strategic Marketing Manager UNI

Last Year (from January to February 2002) UNI lunched a survey on what would be its role on Risk Management for the needs of Italian Industry. A series of questions were send by email to the UNI's members to have an idea of how the risk management activity is a real activity among them. the aim was also to understand the possible action of UNI to develop the risk management culture.

The panel was composed by 45 'experts' who are particular members of the technical commission of UNI, ad 300 societies among the UNI's members.

The survey underlined four major points:

  • Risk management knowledge is not diffuse in many different industrial sectors and it's often confused with the problems of safety in the workplace;
  • Only one third of the enterprises have a small structure for risk management bur only committed on traditional risk management in a specific issue like ICT Risk, Insurance Programme, Financial Risk;
  • Risk management programmes are divided by many different middle managers instead of being controlled by the top management:
  • All the managers interviewed were interested on training programme to know the Risk Management discipline and its tools.
The list of the most selected activities show that the Risk Management is primary identify with the best allocation of the insurance portfolio (30 %) and the IT security.
Is also very high (42 %) the percentage of whom does not do any RM activity or does not know what is rally done.
The person who directly is affected by the responsibility of RM is a member of the board only in the 13 % of the cases.

Risk Management is something that must be known from the bottom to the top management and this is what A.RI.M.AS. believes.
Risk Management should became part of an organization's culture, it should be integrated into industrial philosophy, practices and business plans rather than be viewed or practiced as a separate programme.

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The risearch activities - A.RI.M.AS.