The Risk Management Function and ORSA process

The CPD session will strengthen the participants’ knowledge as how to implement an effective Risk Management Function which facilitates the establishment of an adequate Risk Management System of a (re)insurance undertaking in line with Solvency II requirements.

Description:

The CPD session will cover:

• The requirements emanating from Solvency II in relation to the implementation of an effective Risk Management Function which facilitates the establishment of an adequate Risk Management System.
• The roles and responsibilities of the Board of Directors including oversight expected to be carried out in relation to the Risk Management System and when the Risk Management Function is outsourced.
• How is it ensured that the Risk Management Function is carried out in an effective manner in line with Solvency II requirements.
• An understanding of the ORSA process which forms an integral part of the Risk Management System of an undertaking.

Course Topics:

• Overview of the Solvency II requirements in relation to the implementation of the Risk Management Function and the ORSA process.
• Defining the ‘Risk Management System’ and ‘Risk Management Function’
• The role of the Board of Directors in ensuring the establishment of an adequate Risk Management System and ORSA process.
• The role of the Risk Management Function within a (re)insurance undertaking and how this can be implemented in an effective manner.
• Effective risk management reporting
• What are the key components underlying the ORSA and how to produce an effective ORSA which adds value to an undertaking

Learning Objectives:

Obtain a clear understanding of:

• The Solvency II requirements in relation to the Risk Management Function and the ORSA process
• The difference between the ‘Risk Management System’ and ‘Risk Management Function’ and how they interact
• The roles and responsibilities of the Board of Directors in relation to the implementation of the Risk Management System
• The roles and responsibilities of the individual approved by the MFSA to carry out the Risk Management Function
• Establishing and maintaining effective risk management reporting
• What are the primary objectives of the ORSA, how to establish an effective ORSA process and its contribution within the Risk Management System of an undertaking.

Target Audience:

Individuals who:

• are already working in the insurance sector and are either responsible for carrying out the Risk Management Function or are engaged in the functions and operations of Risk Management
• intend to take up a career within this environment, complimenting their acquired specialised studies in various other disciplines
• who have an interest in the subject but already have an understanding of risk management principles

Assessment Questions and Answers:

In line with MFSA requirements, a short multiple-choice assessment will be provided by the trainer towards the end of the session. A Certificate of Attendance will be awarded to all students who attend the CPD (duration will be included on certificate). A Certificate of Achievement will be awarded to those who sit for the assessment and are successful (pass mark 60%)