Risk management system

An adequate and effective risk management is a component of the orderly business organisation in credit institutions, insurance undertakings and investment firms.

Risk management systems consist of all strategies and procedures, provisions and processes for measuring, controlling and monitoring of risks that are specific to the company. The constant risk management function takes a pivotal role in this context.

An adequate and effective risk management is a component of the orderly business organisation in credit institutions, insurance undertakings and investment firms.

Both risks, that are to be included in the calculation of the solvency capital requirement, as well as the risks that are not fully captured in this calculation must be included in the risk management system in accordance with Solvency II. All necessary strategies, processes and reporting procedures must be established to be able to measure, monitor, manage and report about all actual and potential risks, both on an individual and aggregated basis as well as the mutual interdependencies between these risks.