Organisational Changes to Support ORSA

Bogie Ozdemir

In this chapter, we will discuss organisational design to support stronger corporate strategy setting. ORSA effectively integrates the businesses under the corporate umbrella, and firms will need to adjust their organisational structure and decision-making processes to include more active management of risk synergies among business groups. We will start by examining the larger and more elevated role that the corporate functions will need to play, before focusing on the new partnership between the risk and finance functions.

The risk and capital optimisation framework that was discussed in Chapter 8 needs to be operationalised at the enterprise level, where risk diversification potentialities (risk synergies) across the enterprise are maximised by means of integrated management of global risk exposures. Under this operating model, corporates will need to take on a larger, central role in managing the risk and capital synergies between the separately managed businesses, and may need to be more involved in influencing business-level product strategies. For many insurers, global businesses are managed as separate modules and optimised locally only with respect to regulatory