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Tushar ChatterjeeHead Enterprise Risk Management Asia
19th GlobalConference of Actuaries30th – 31st January, 2018 | Mumbai, India
Organizer
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30 January 2018, Session C4
Risk management forsteering business
19th GlobalConference of Actuaries30th – 31st January, 2018 | Mumbai, India
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19th GlobalConference of Actuaries30th – 31st January, 2018 | Mumbai, India
Risk Management in Action
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19th GlobalConference of Actuaries30th – 31st January, 2018 | Mumbai, India
Mandate given by the Board of Directors:Risk Management enables conscious and transparent risk-taking by proactively partnering andconstructively challenging stakeholders in order to facilitate business success.
Risk Management’s shared purpose and mission:
Risk Management is a risk controlling function, advising theExecutive Committee(s) and the Board(s) of Directors toensure that risks:
• are fully understood and appropriately governed• correctly modelled and valued• transparently monitored and controlled
Risk Management enables the right way of risk taking.
Risk Management makes a difference to brand-value andbusiness development.
RiskController
RiskEnabler
Risk Management Mandate and Mission
Risk Management Tools
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19th GlobalConference of Actuaries30th – 31st January, 2018 | Mumbai, India
Group Risk Policy
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Policies and Standards in one consistent Framework that establishes aclear hierarchy
19th GlobalConference of Actuaries30th – 31st January, 2018 | Mumbai, India
Level 1 – Risk selection criteria,Risk tolerance, RM principles
Level 4 - Method andprocess documentation
GroupRisk Policy
GroupRisk Category Standards
Level 3 – Risk taking oversightfor specific risk categories
Documentation on specific topics
Level 2 – Risk taking oversightthroughout the Group
GroupRM Standards
SRLBylaws
Level 0 – Risk Managementtasks of the BoD
Group Risk Governance
Risk Appetite, Tolerance and Limits
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Risk limits manage risk appetite at all levels of the organisation
19th GlobalConference of Actuaries30th – 31st January, 2018 | Mumbai, India
Allocated risk limits restrictedby risk tolerance criteria
Risk limits on relevant risk driversand possible high risk accumulation
Exposure monitoring & accumulation control,model validation, insurance risk review, costing
& reserving linkage, Terms of Trade, costingparameters task-force
Underwriting authority framework,underwriting guidelines
Deal
Portfolio
Available Capital
Risk Capital in Business Steering
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Risk Capital fully embedded in business steering process
19th GlobalConference of Actuaries30th – 31st January, 2018 | Mumbai, India
Top-down plan.Reference forperformance mgmt.
Risk capital costallocation.
Costing factor setting.
Bottom-up planand limit setting
Economic valuereporting.Compensation.
Limit monitoring.Transaction Referrals.
Risk Tolerance,Risk Appetite
Strategic Plan and ProjectedSolvency Assessment
Current Solvency andRisk Assessment
Strategy
Target Setting
Pricing
Planning
Monitoring
PerformanceMeasurement
Risk Matrix
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Operational Risk Matrix is used to report the most material operationalrisks to the EC and BOD
19th GlobalConference of Actuaries30th – 31st January, 2018 | Mumbai, India
Risks are being assessed on an“residual” risk impact and an annualprobability. The assessmentrepresents the independent view ofRisk Management.
Risks which are above (or approaching) the Operational Risk Tolerance Limit must bereported to the Board of Directors on a quarterly basis, including risk mitigation activities.
Risk Culture : Key Risk Taker Assessment
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Key Risk Takers are executives in core risk taking positions, whodecide business/people strategies, approve budgets, can materiallyinfluence financial results or expose the firm to significantoperational/reputational risks
19th GlobalConference of Actuaries30th – 31st January, 2018 | Mumbai, India
Across Swiss Re all Group Executive Committee members and Group Managing Directors in first line function are identified asKRT positions holders.
Tone-at-the Top
Risk Governance Decision Making
Risk Competency
Strong risk leadership andcommunicationStrong tone-at-the top for riskmanagement activities, e.g.through fostering a sound riskculture at all levels, clear visionand direction regarding riskleadership.
Informed risk decision takingEnvironment of opencommunication and effectivechallenge in which decision-making processes encourage arange of views and solutionsand constructive, criticalattitude among employees isstimulated.
Clear risk takingaccountability and highrisk transparencyRobust risk governanceframework with clearaccountability formanaging risk established.Transparent and highquality risk managementinformation.
Empowered riskmanagement resourcesand skillsRisk management skills areproperly embedded inBUs/GFs.
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19th GlobalConference of Actuaries30th – 31st January, 2018 | Mumbai, India
Thank You
19th GlobalConference of Actuaries30th – 31st January, 2018 | Mumbai, India
Organizer
Tushar [email protected]
Thank You