Including a uniform risk language, risk warehouse, and working governance mechanism.
As you all know, insurance serves a critical role in the functioning of a modern society, through reducing uncertainty by protecting people and businesses against the risks of future events, for risk management to function properly, one should think about the desired results in advance, consequently, supervisors should take steps, directly or through regulated entities, to provide that conglomerates have adequate risk management processes in place to manage group-wide risk concentrations.
When you have to build up your loss management from ground up, there is one important other consideration, tools now exist that allow organizations to structure and store all relevant data in a central repository, including data related to risks, controls and procedures. To begin with, it may well be that internal models are better placed to achieve the comprehensive risk capture that supervisors want for certain types of activity but that, if that is the route that you choose to go down, you need to be sure that the data underpinning the model are robust and the assumptions appropriately conservative.
You can choose to have the system automatically make decisions based on industry best practice and international standards, or, you can review each risk and make your own decisions about accepting or treating that risk, the risk function is accountable for quantitative and qualitative oversight and challenge of the risk identification, measurement, monitoring, perform qualitative review of risk data including internal, external incidents and issues to identify themes.
In response to the crisis, your organization may have limited expectations of risk management, and nevertheless have a very mature approach to the way in which it seek to obtain the available benefits. In conclusion, exposure management is a key element of any insurance organizations risk management strategy.
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