Solvency II and Risk Management

Risk Management and Operational Risk

The four articles in this section take a practical look at risk management, and especially operational risk, in (re)insurance companies. The first describes the principles and benefits of good risk management and how they apply to Solvency II. The second examines their implications in more detail, including the role of the chief risk officer. The third contains guidance about implementation, whilst the fourth sets out eight “golden rules” of Solvency II.

1. The principles and benefits of risk management
   • The importance of good risk management.
   • What is risk management and what does it mean for insurers?
   • The main features of best practice risk management.
   • The benefits of best practice risk management.
2. What does a risk management framework look like?
   • What does a risk management framework look like?
   • What is the role of the Chief Risk Officer?
3. How do I set about implementing a risk management framework?
   • The main challenges.
   • The balance between risk and reward.
   • Addressing the challenges.
4. Golden rules
   

This analysis has been prepared by Mike Wilkinson, who leads the risk management consulting team at EMB. mike.wilkinson@emb.co.uk