Ufficiali bolivariani in Colombia e Venezuela

From Table 3-1, the results of the surveys suggest the review of concepts regarding potential contribution that KM could have to risk control and ERM implementation. The points that led and support this research‟s hypotheses formulations are the following:

 The actuarial society survey focused on the gap of ERM training, but identified important points about the need for interdisciplinary work and the need for complementary knowledge.

 The Towers Perrin Survey identified the different levels of maturity in the ERM implementation. Equally, there is a clear indication that data, technology and process are the challenges, and mainly the issue of data quality, integration and availability.

 PriceWaterhouse presented the importance of the alignment of ERM strategy and governance even though there is a lot of room for improvement.

 Aon pointed out the need for integration of risk and finance information to be used in the decision-making process.

 RMA indicated issues in silo information systems development, issues in the language used in RM areas and a lack of understanding of ERM across the organisation.

 The Conference Board of Canada contributed identifying ERM benefits that can complement the benefits that have been used in this research.

 Ernst and Young indicated the need of improvement knowledge for RM processes that, each time, are more demanding.

Technical attributes

 Knowledge about ERM was gained by self-study and self-initiative

 Multidisciplinary work is required

 Development of transferring and learning form experiences is required

 There is lack of knowledge in several specific topics that includes ERM

 Respondents consider it important to be more active in the risk integration process

 Actuaries consider that they could use their knowledge not only in insurance industry but also other financial organisations

 There is a desire to learn using different means to access knowledge

 In terms of desired knowledge and required knowledge analysis identified what to look an educational program

 A company that is bigger has more ERM experience than the smaller size ones

 European insurers are better prepared and the implementation has more steps done

 ERM is influencing the making-decision process in terms of strategic decisions and risk appetite

 The economical capital practice is evolving to analyse a full year

 Operational risk is a weak part of ERM process a “significant work is required”

 Data, people and systems were highlighted as challenges for ERM implementation

 ERM has modified the decisions in different fields from pricing, product portfolio to capitalization PriceWaterHouse (2008) Survey to

insurance industry, 53 global insurers and reinsurers

 ERM is taking on more importance but there is room to integrate it with strategy

 There are still issues with data and modelling

 The governance over ERM is an issue

 ERM is not yet well integrated with the business

 Alignment of risk and finance is limited

 There is a need to find better developments

 Reporting through the ERM principles has improved

 The analytic capacity has been improving and although there are more capabilities in scenario analysis and model building, there is still room to improve

 A consistent risk language and alignment of risk and finance are required

 Roles and responsibilities are not clear and interaction between risk and business groups is often limited

AON (2010) the survey with 210 responses from different industries around the world

 The board plays an important role to develop and include ERM in the organisation, including ERM in their strategy design

 ERM culture is required to be engage and accountable at all levels of the organisation

 Transparency in risk communication is needed

 It is needed the Integration of operational and financial information into the decision-making process

 It is required to use of methods to understand risk and added value

 There is a need to be aware of emerging risk using internal and external data Risk Management Association RMA

(2006) ERM survey 31 organisations, online survey, all members of the association and directly involved in risk management activities

 Identified that the automation for the organisation in the silo view is better than integral one

 A common risk language at the organisation is not good for a 25% of the respondents

 The best terms understood are Loss given default, probability of default, risk thresholds and limits

 The ERM knowledge is acquired mainly by the job, seminars, conferences, industry discussion groups

 The three main barriers for ERM advances are: Speed of implementation, support from management, quality of data, staff and budget, lack of required data

 There is mainly agreement that ERM helps in: strategic planning, risk appetite definition, more

 Better understanding and management of risk (including integrated view)

 Improved corporate governance or meet board requirements

 Assist in allocation of resources

 Effective decision-making

 Minimize surprises

 Improve risk reporting and risk controls

 Achieve financial stability or better risk-adjusted returns

 Improve credit rating

 Compliance

 Enhance shareholder or firm value

 Create a risk aware culture

 Best practices or achieve excellence

 Support business or strategic plan Ernst and Young 2001-2008 global

survey  Knowledge, from people, data and technology

 ERM requires knowledge in identification, classification, transference, hedging, planning and evaluation of risk, the processes use tacit and explicit

Table 3-1 Surveys describing ERM practice and its development

In summary, the different surveys allow a review of several aspects of ERM implementation, perspectives, barriers and benefits, and open a window to do research in the influence of knowledge for ERM implementation. The hypotheses in general have been selected based on the literature review and the identification of the main ideas of the surveys that have been performed in financial institutions regarding ERM (see Table 3-1).

From the literature review and the surveys administered by different organisations, the variables and the items used to construct them are presented. Based on these variables, the next step was to formulate the hypotheses regarding the relationship between the KM variable and the RM variables; however, a point to take into consideration is that there is not a tested scale in previous research works to use in this research. This lack of previous studies using a scale has led to the need of using items to define the variables and to measure the reliability of the concept that has been constructed. Churchill (1979) identified the steps to build better measures. According to him the structure of the variable construction will improve when multi-items are used. In this research all the variables have five or more items to define the variable. The only exception is the variable people´s interaction for risk information system which has only one. The reason was that the variable captures the concept of acting with others to perform a specific activity, which does not indicate ambiguity or confusion.

The remaining sections are organised as follows: First, in sections 3.4 and 3.5 the variables that are related to RM are identified along with the items that have been used in order to consolidate the concept. Second, sections 3.6, 3.7, and 3.8 include the variables, items and hypothesis formulation regarding the KM concepts.