1. Extracts from A Presentation on Risk Management XYZ Insurance/Group

2. Sample Definition of Risk TheThreat of an adverse outcome that will negatively affect - Shareholders worth - Institutions objectives and strategies

3. Types of Risk Operational Risk: IT system failure Control system failure – business wrongly captured or not transferred to Reassurer and claim arises. Financial Risk: Asset failure Reassurer failure Mispricing Hazard Risk: Environmental pollution, product liability issues /property risk Market Risk: ‘wrong’ purchase. A bad merger

4. Insurance Business Life Health General Characteristics Risk Savings Risk Profile Personal Lines Commercial Lines (Group). Risk: In exchange for a ‘low’ premium, enterprise is exposed to meeting ‘high’ claim reflecting the principles of: Pooling Probability.

5. Underwriting (KYC) Pricing Reassurance Prudent Reserving – done at least on a quarterly basis Investment strategy (Quality/Diversification etc) ALM Continual Process Review/improvement Instruments used to minimize Risk

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