An innovative approach to identifying and managing adaptations and interactions of risks within companies has been developed in research carried out by Milliman and the Universities of Bath and Bristol for the Actuarial Profession.

The approach involves looking at a company as a complex adaptive system, and combines elements of biology, computing, social sciences, behavioural science, information theory and other disciplines.

In an interview with InsuranceERM, Neil Cantle outlines the practical applications of the research to risk appetite and emerging risk.