Litigation Strategy and Case Evaluation
Portfolio Management
The function measures combined exposure across matters sharing a product, practice, location, or policy period. It informs reserving, reinsurance, coverage strategy, and business decisions beyond individual claim handling.
Correlation among claims drives aggregate risk.
Alternative Names:
Aggregate Risk Management|Portfolio Exposure Management
Why it Matters?
Correlated claims behave differently than independent ones, since an adverse ruling or verdict in one matter affects the entire related population simultaneously, which means aggregate exposure exceeds the sum of individually assessed claims. That correlation is what makes bellwether outcomes and early adverse rulings disproportionately consequential. Coordinated defense strategy across related matters addresses the correlation that individual handling cannot.
Frequently Confused with
Related terms
Frequently asked questions
Why does aggregate exposure exceed the sum of claims?
What addresses the correlation?
