Strategic Financial Management in a Geneml Insurance

STRATEGIC

FINANCIAL

MANAGEMENT COMPANY

F. RAINS

IN A GENERAL

JOSEPH W.E.

INSURANCE

MARIATHASAN, PETER

ABSTRACT

The paper considers the objectives of company modelling for management purposes by consideration of the criteria likely to be used by shareholders to judge company performance retrospectively. It then goes on to analyse current approaches to modelling and strategic management and suggests that current models do not make full use of current computer capability and, judged by the standards of strategic management theory, remain t,oo internally orientated. A method is then proposed for developing a model for a large quoted company which would be capable of widespread use within the organisation. It is suggested the benefits of the model would include broadening the strategic management base and serving as a catalyst for more comprehensive and credible management information. In conclusion it is suggested the actuary should form only one part of an integrated strategic management team. “To make plans and project desiyn,s brings with it nlany good sensations; and whoever had the strength to be n0thin.g but a forger of plans his whole life long would be a very happy man: but he would occa.sionally have to take a rest from this act&&J by carrying out a plan. -and tlhen comes the vexation and the sobering up”. F. Nietzsche 1. INTRODUCTION The paper considers the objectives of company modelling for management purposes by consideration of the criteria likely to be used by shareholders to judge company performance retrospectively. It then goes on to analyse current approaches to modelling and strategic management and suggests that current models do llot make full use of current computer capability and, judged by the standards of strategic management t,heory, remain too internally orientated. A method is then proposed for developing a model for a large quoted company which would be capable

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Joseph

W.E. Mariathasan,

Peter F. Rains...