How an Insurance Firm Met Regulatory Requirements and Gained Peace of Mind

Background & Challenges

A multi-state residential home insurance firm with a smart home technology capability wanted to understand their risk profile and build a foundational Enterprise Risk Management (ERM) program that aligned with leading practices and standards such as the Committee of Sponsoring Organizations of the Treadway Commission (COSO) while meeting the unique business needs of an organization that operates at the intersection of insurance and technology. The client was also concerned about fulfilling regulatory requirements unique to the insurance industry.

Approach

BDO brought together a delivery team composed of Risk, Insurance, Technology, and Actuarial subject matter resources to develop the client risk profile and build a foundational ERM program including an ERM governance and operating model for assessment, reporting, and monitoring of key risks to the organization. BDO conducted data reviews, interviews, and a series of workshops to develop a risk assessment, risk universe and taxonomy, and the foundational elements of ERM governance including an ERM charter.

Client Impact

The BDO team ultimately identified, analyzed and prioritized more than 150 risks to the business. We identified 45 risks that required executive-level attention and remediation planning. The reports generated by BDO fulfilled regulatory requirements and provided the audit committee with the confidence they needed that the enterprise risks were being sufficiently monitored.