Functions of The Chief Risk Officer

The chief risk officer of an insurer or of a pension fund will have, at the least, the following functions:

Identification of the significant risks described below:

  • The significant insurance and financial risks to the insurer’s financial strength or to those insured by a pension fund, whichever is relevant, and which can impact on the liability to the insureds.

  • The significant risks for the insurer’s financial strength or to those insured by a pension fund, which are involved in the assets held against an insurer’s insurance liabilities or against a pension fund’s liabilities, whichever is relevant, or which relate to investment strategy regarding the said assets;

  • The significant risks facing insureds that are involved in assets held against the yield dependent liabilities of the insurance company and that are involved in investment strategy.  The above applies separately to each investment track.

  • The significant financial risks for the financial strength of an insurance company which is a managing company of a pension fund.

ACTUARIAL JOB SEARCH
Location:  
Category:  
Qualifications:  
Job Type:  
Keywords:  
Job Reference:  
Register for E-Mail Alerts

Assessment of the manner in which each risk that is identified as described above is managed, at least in the following respect:

The chief risk officer will examine whether the insurer’s or the pension fund’s existing controls, means and resources:

  • Are sufficient for measuring the risk and for monitoring it;
  • Enable the spreading of the risk, the limitation of the risk to a level that has been determined in advance, the set-off or transfer of the risk to a different party;

  • Are appropriate for the insurer or the pension fund, whichever is relevant

  • Are consistent and coordinated with the controls relating to other significant risks.

Immediate reports and updates, and supervision of the correction of deficiencies

A)

If it has been proven to the chief risk officer that the said controls, means and resources do not meet each of the criteria mentioned above, the chief risk officer will take the following steps:

  • The chief risk officer will report immediately and in writing to the insurer’s CEO and board of directors. Such report shall include a detailed description of the significant deficiencies and recommendations for their correction.

  • The chief risk officer will report immediately and in writing to the insurer’s CEO and board of directors. Such report shall include a detailed description of the significant deficiencies and recommendations for their correction.

  • The chief risk officer will update the CEO and the board of directors in writing regarding the completion of the correction of the deficiencies. A chief risk officer may integrate the report required by this paragraph into the report required pursuant to (B) below.

B)

If the chief risk officer of an insurer or the pension fund, whichever is relevant, is made aware of information regarding any matter which he believes can have a negative and significant impact on the financial condition of the insurer or of the pension fund and which requires correction, the chief risk officer will report regarding such information immediately and in writing to the insurer’s CEO and to its CFO. A copy of such report will be delivered to the insurer’s or pension fund’s (whichever is relevant) board of directors, internal auditor, chief actuary, and auditor.

More information on the responsibilities of a Chief Risk Officer can be found here.

ACTUARIAL JOB SEARCH
Location:  
Category:  
Qualifications:  
Job Type:  
Keywords:  
Job Reference:  
Register for E-Mail Alerts