Entire section
3.1.4. Contents of Risk Tolerance Statement
3.1.6. Notification of the AFSA

3.1.5. Approval of Risk Management Strategy

(1) An Insurer’s Risk Management Strategy must be approved by its Governing Body.

(2) Any material change to or deviation from an Insurer’s Risk Management Strategy must be approved by its Governing Body.

(3) In giving its approval to a Risk Management Strategy, or to any amendment to or deviation from a Risk Management Strategy, the Governing Body of an Insurer must be satisfied that:

  • (a) the strategy and any changes to it mitigate and control the risks included in the Insurer’s Risk Management Policy; and
  • (b) the Risk Management Policy is appropriate and gives reasonable assurance that all material risks facing the Insurer are prudently and soundly managed having regard to the nature, scale and complexity of the Insurer’s business.