ORSA risk management has five key components: Risk Culture and Governance, Risk Identification and Prioritization, Risk Appetite and Tolerances, Risk Management and Controls, Risk Reporting and Communication. As you can see, the scope of ORSA compliance is wide, which means having one centralized, standardized ERM framework will help you break down each of these components into actionable pieces with accountability.
For instance, as defined by the NAIC, Risk Culture and Governance provides defined roles, responsibilities, and accountability in risk-based decision making. In effect, the principle builds off of a 2010 SEC mandate requiring corporate boards to document their role overseeing enterprise risk. ERM software like LogicManager is designed to clearly define the role each level of the organization plays in achieving ORSA compliance, and to facilitate communication between these groups.
With LogicManager, organizations can create a unified risk culture, identify risks across silos, prioritize their resources according to criticality, define risk tolerances, document controls, and prove ORSA compliance with pre-built and custom reports. In this way, an ERM framework removes the duplicate effort and wasted resources that could result from decentralizing Own Risk Solvency Assessment activities.