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Long Term Insurance Act, 1998 (Act No. 52 of 1998)

Board Notices

Notice on Governance and Risk Management Framework for Insurers, 2014

Part 3 : Composition, Governance and Structure of the Board of Directors

Committees of the board

8. Risk committee

 

A risk committee must perform the following functions:

(a) assist the board of directors in its evaluation of the adequacy and effectiveness of the risk management system;
(b) assist the board of directors in the identification of the build-up and concentration of the various risks to which the insurer is exposed;
(c) assist the board of directors in identifying and regularly monitoring all material risks to ensure that its decision-making capability and accuracy of its reporting is adequately maintained;
(d) facilitate and promote communication, through reporting structures, regarding the matters referred to in paragraph (a) or any other related matter, between the board of directors and managing executives;
(e) ensure the establishment of an independent risk management function;
(f) introduce such measures as may serve to enhance the adequacy and effectiveness of the risk management system; and
(g) co-ordinate the monitoring of risk management on an enterprise-wide2 and individual business unit basis.

 

 

2 The references to enterprise-wide refer to different activities across the solo insurance entity.