Interviews Flashcards
Why Insurance?
Global reach helping businesses act more freely and individuals security.
Social value- derisk climate change technology
What is enterprise risk?
- Enterprise risk management (ERM) is a methodology that looks at risk management
strategically from the perspective of the entire firm or organization. It is a top-down strategy
that aims to identify, assess, and prepare for potential losses, dangers, hazards, and other
potentials for harm that may interfere with an organization’s operations and objectives
and/or lead to losses. - Successful ERM strategies can mitigate operational, financial, security, compliance, legal,
and many other types of risks. - ERM allows managers to shape the firm’s overall risk position by allowing certain business
segments to engage with or disengage from particular activities. This is converse to
traditional risk management, which leaves decision-making in the hands of division heads,
and can lead to siloed evaluations that do not account for other divisions.
➢ Risk Assessment - Evaluating, recording, and assessing a risk.
➢ Risk and Control Framework – Refers to the set of rules/checks which will become
‘embedded’ in to the business to mitigate/reduce risks.
➢ Risk Culture – Many companies will refer to having created a successful ‘Risk Culture’ – one
where their risks and control frameworks are robust and effective.
➢ Corporate Governance - The system of rules, practices, and processes by which a company
is directed and controlled. Corporate Governance refers to the way in which companies are
governed and to what purpose. It identifies who has power and accountability, and who
makes decisions. It plays a big part in Enterprise Risk Management.
➢ Regulation – A Financial Services firm is legally required to be officially registered with a
regulatory body. The two main regulatory bodies in the UK are the FCA (Financial Conduct
Authority)v and the Bank of England/PRA (Prudential Regulation Authority).
Why howden?
- Europe’s biggest investment brokers with talented individuals who promote entrepreneurial mindsets within their employees. Provides me with a dynamic learning environment and networking opportunities.
-Innovators can be seen through climate change efforts: Parametric insurance, built on pre-agreed triggers that result in pre-agreed payments, can provide the immediacy and reliability of funding needed to prevent a disaster from turning into a crisis, and reduce the overall financial and, more importantly, human cost.
Role activities
To support the embedding of an Enterprise Risk Management framework and culture
across the business,
To directly support the Head of Risk (Sophie) to put the appropriate systems, processes
and corporate governance rules in place to support this effective risk management.
Top 3 challenges facing the insurance market at the moment?
-Protecting personal data.
-Climate change effects on economy, human health and infrastructure.
-Cyber security from remote working increases.
Scorecards, delphi score,
gini coefficient and PSI
In simple words, Population Stability Index (PSI) compares the distribution of a scoring variable (predicted probability) in scoring data set to a training data set that was used to develop the model. The idea is to check “How the current scoring is compared to the predicted probability from training data set”.
Commercial Delphi score is an analytical tool designed to highlight the strength, performance and ultimately the creditworthiness of each company in a single score. The score ranges from 0 to 100 with the lowest scoring companies carrying the highest risk.
What is the Gini in banking?
The Gini coefficient is a metric that indicates the model’s discriminatory power, namely, the effectiveness of the model in differentiating between “bad” borrowers, who will default in the future, and “good” borrowers, who won’t default in the future
Scorecard enables credit risk analysts to generate consistent standalone credit scores that reflect the fundamental creditworthiness of all banks in their portfolio - whether they are rated or unrated.
