01Jul19

SCOR Live Blog

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Insurance and Distributed Ledger Technology: A risk manager’s perspective

The latest paper from the CRO Forum provides an overview over specific issues to consider when assessing the risk of a DLT-based application.

Since the birth of the Bitcoin cryptocurrency, over the last few years hype has surrounded Distributed Ledger Technology (DLT) and especially blockchain. These technologies have not yet delivered on promises, but experts believe that DLT has the potential to transform the financial services industry and will soon start to deliver full value propositions. This paper is therefore meant as a practical tool for risk managers to accelerate the accomplishment of the productive phase of DLT.


The CRO Forum believes that, although traditional risk management frameworks remain valid, there are specific issues to consider when assessing the risk of a DLT-based application. The paper introduces the technology, provides advice on how to perform a risk assessment, discusses risk management governance, and highlights the contribution that CROs can provide within respective companies as well as to the broader DLT ecosystem. To make the paper practical, a detailed risk catalogue and two risk assessments of real DLT-based solutions are provided.

 

About the CRO Forum

The CRO Forum focuses on developing and promoting industry best practices in risk management. Comprised of Chief Risk Officers from multinational (re)insurance companies, it aims to represent the members' views on key risk management topics, including emerging risks. It regularly publishes practice and position papers on timely risk management subjects. Frieder Knüpling, Group Chief Risk Officer of SCOR, currently serves as Vice Chairman of the CRO Forum.