As an illustration, insurers should be particularly aware that certain major trigger events, such as catastrophes, downgrades from rating agencies or other events that have an adverse impact on the insurer’s reputation, can result, for example, in a high level of claims, collateral calls or policyholder terminations, especially from institutional counterparties or institutional policyholders and hence lead to serious liquidity issues. The ERM framework should adequately address the insurer’s options for responding to such trigger events.