Risk Management Terminology

The CAS-CIA-SOA Risk Management Section Research Team is pleased to make available this research report that examines differing risk terminology usage across industries involved in ERM. As risk management is being transformed from a piecemeal process into a coordinated effort within
organizations, progress is being impeded by differing terminology, methodology, and measures. The motivation for the research was the team's desire to improve communications among risk professionals both within and across organizations. To conduct the research, a team from the University of Wisconsin, comprised of Joan Schmit, Marjorie Rosenberg, Shinichi Kamiya, and Peng Shi, surveyed risk management professionals about their knowledge of risk management terminology. The results confirm the existence of significance differences in terminology. The dominating pattern observed is a dichotomy between internal and external perceptions. A difference between terms used by actuarial professionals and traditional risk managers was also observed.