23 May 2011
The discussion was part of the Actuarial Profession’s enterprise risk management symposium which took place in London on 9 May, 2011. It covered the preliminary findings of research Mr Cantle is currently undertaking with the University of Bath and the University of Bristol and examined the nature of risk appetite and emerging risk and demonstrated how the correct scientific tools and principles can be used to identify and manage emerging risk more accurately.
Mr Cantle said: “Our research has demonstrated that existing methods oversimplify the way real risks work and do not appropriately allow for the interactions between risk factors and the resulting emergent behaviour. Using insights from complexity science it has been possible to develop practical tools and methods which reveal the signatures of trouble early and help to link overall risk appetite to underlying limits."
The research will be formally presented at the Actuarial Profession’s Risk and Investment Conference which takes place in Gateshead from 19-21 June 2011.
Ends.