Group Risk Management: A Seamless Approach

[Company Name] has developed a robust framework to mitigate potential risks and ensure the long-term sustainability of its operations. This approach is designed to provide a seamless risk management strategy, ensuring that all aspects of the company’s activities are carefully monitored and managed.

Trading positions are carefully set with trading limits approved by the board.
The day-to-day operations and utilization of these limits rest with the Group Treasurer, who is responsible for managing the risk of adverse movements arising from fluctuating currency exchange rates and interest rates.
The Group Treasurer and an independent risk manager monitor the trading portfolio daily and report weekly to relevant risk monitoring structures in the group and to the Chief Executive Officer.

Counterparty Limits

Counterparty limits are allocated on foreign exchange, capital market, and money market transactions.
The risk manager monitors these limits daily and reports any deviations to relevant executive management.

Underwriting Risk

Underwriting risk is the risk that actual exposure to mortality and morbidity risks will exceed the best estimate of the statutory valuator.
The statutory valuator performs regular investigations into actual mortality and morbidity experience, with the best estimate assumptions being adjusted accordingly.
All mortality and morbidity risks above a set retention limit are reinsured.

Diversification of Products, Risk Covered, and Geographical Location of Policyholders

The diversification of products, risk covered, and geographical location of policyholders ensures that the concentration of underwriting risk is alleviated.

Internal Audit

The Group’s internal audit function performs an independent appraisal activity with full cooperation from the board and management.
Its objective is to assist executive management in the effective discharge of their responsibilities by examining and evaluating the Group’s activities, resultant business risks, and systems of internal control.
Internal Audit reports functionally to the Group Audit Committee and administratively to the CEO of the Group.

Internal Control

Internal control comprises methods and procedures implemented by management to safeguard assets, prevent and detect error and fraud, and ensure the accuracy and completeness of accounting records and the timely preparation of reliable financial information.
The directors are responsible for maintaining an adequate system of internal control. Such a system reduces but cannot eliminate the possibility of fraud and error.
These controls are based on established written policies and procedures and are implemented by skilled personnel with an appropriate segregation of duties.

By implementing this comprehensive risk management framework, [Company Name] is able to mitigate potential risks and ensure the long-term sustainability of its operations.