Enterprise Risk Management

Enterprise Risk Management (ERM) is a critical component of increasing your organization’s value by assessing, controlling, exploiting, financing and monitoring risk. The importance of ERM is self-evident from demands for information by rating agencies, regulators and financing institutions. While economic capital modeling is an essential element of ERM, it is only part of the process.

At Pinnacle, we understand that the “M” in ERM stands for "management," not "models." We can assist you in the initial review, design and documentation of internal economic capital models and marginal pricing frameworks. Our holistic approach to ERM will help you to document your organization’s due diligence regarding ERM to interested parties.

Our expertise and insight comes from decades of tailoring specific solutions that meet the ERM needs of a diverse selection of entities and organizations:

Insurers and Reinsurers

We work with insurers and reinsurers on a variety of ERM projects, including:

Helping companies articulate their risk appetite
Building Dynamic Financial Analysis (DFA) models and performing DFA analyses (including company valuations) for insurers and reinsurers
Working on a variety of issues surrounding capital modeling
Assisting in the development of reinsurance treaty pricing models that incorporate rating agency capital requirements
Helping prepare necessary documentation for the capital models that they have developed
Assisting with design of marginal pricing models for reinsurance companies
Providing assistance for strategic decisions, such as expanding into new lines of business or regions
Providing actuarial support for Merger & Acquisition (M&A) decisions

Asset Managers

We work with asset managers to develop models that optimize asset allocations and help match the durations of assets and liabilities.

Regulators

Issues such as aggregation of risk, capital modeling and risk control procedures are all receiving considerable attention by regulators. Pinnacle works with a wide range of clients on these and other ERM issues, and is well-qualified to assist regulatory bodies in these matters.

Self-Insured Entities

Pinnacle helps self-insured entities analyze their entire cost of risk associated with the selected retention option. We can analyze various retention levels for a self-insurance plan in an effort to maximize the benefit of the plan, while focusing on the risk appetite of the entity.

Government Insurers

Pinnacle has vast experience assisting government insurance entities with ERM projects. Typically, this involves DFA analyses and other studies regarding capital adequacy and reinsurance structures.

Public Entities

Pinnacle’s expert staff helps public entities all over the United States in analyzing their exposures, liabilities and risk management procedures in a cost-effective way.

Enterprise Risk Management Experts

Derek W. Freihaut

Joseph A. Herbers

Robert J. Walling III

Timothy C. Mosler

Aaron N. Hillebrandt

Laura A. Maxwell

Enterprise Risk Management Services

Capital Allocation

Pinnacle actuaries have real world experience addressing issues related to allocating capital for pricing and associated profitability metrics.
Capital Modeling

Pinnacle’s team of highly qualified actuaries has experience in all areas of capital modeling, ranging from regulatory perspectives and rating agency models to models reflecting individual company risk and reward preferences.
Risk Aggregations

Pinnacle actuaries are experts in identifying how risks interact and aggregate and in developing methods for quantifying and mitigating these aggregations.
Risk and Reward Analyses

Pinnacle understands the dynamics behind the risk-reward trade-off and can help you properly evaluate which risks are worth pursuing.
DFA and Stochastic Financial Modeling

Pinnacle actuaries have been leaders in Dynamic Financial Analysis and other forms of stochastic financial modeling for over 15 years.

Enterprise Risk Management Industries

Health Care/Medical Professional Liability

Pinnacle’s experts understand the rapidly changing health care services environment. We have provided actuarial consulting services in every aspect of medical professional liability insurance at the local, state and national levels.

Contractors

Pinnacle has extensive experience helping contractors navigate their unique and challenging liability exposures.

Transportation

Our focus is to quantify insurers' transportation claims liabilities’ expected ultimate costs and reflect risk exposures’ unique characteristics.

Manufacturing

Pinnacle understands that manufacturers face numerous liability exposures from workers' compensation to auto, and many more. We help manufacturers manage exposures in the highly variegated manufacturing industry.

We We Serve in Enterprise Risk Management

Accountants and Advisors

Our expertise in providing audit support includes traditional insurance companies, reinsurers, risk retention groups and a wide variety of captive insurance companies. We are regularly called on to provide audit support for insurance, alternative markets and self-insurance operations.

Captive Managers

Pinnacle has expertise in many lines of coverage, alternative risk transfer structures, regulatory jurisdictions and industry niches. Our team of experienced consultants understand the needs of captive managers, and bring local knowledge unique to individual market segments.

Insurers

Whether you need to develop an enterprise risk management program, identify best practices for your industry or procure expert insight and analysis for a broad range of projects, our team of experts are focused on doing whatever it takes to exceed your expectations, time and time again.

Regulators

Pinnacle provides a variety of services to insurance regulators. Services include financial exams including risk-focused examinations, rate filing reviews and model reviews. Pinnacle has also assisted regulators with captive applications reviews, training, and legislative costing.