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2.3. Systems for risk management and internal controls
FINANCIAL SERVICES LEGISLATION
RULES
TAKAFUL AND RETAKAFUL PRUDENTIAL RULES
Schedule 6 Prudential returns by Takaful Operators
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2.3. Systems for risk management and internal controls

Guidance: systems and controls requirements in GEN As an Authorised Person, A Takaful Operator is required to comply with the Systems and Controls requirements in GEN 5. The requirements of this Chapter are in addition to the requirements of GEN 5.

2.3.1. Risk management function

A Takaful Operator must establish and maintain an effective risk management function capable of assisting the Takaful Operator to identify, assess, monitor, mitigate and report on its key risks in a timely way; and to promote and sustain a sound risk culture.

Guidance: additional requirements in GEN

A Takaful Operator is also subject to obligations in respect of operational risk, legal risk and fraud risk pursuant to GEN 5.8 (Management of risks).

2.3.2. Actuarial function

A Takaful Operator must establish and maintain an effective actuarial function capable of evaluating and providing advice regarding, at a minimum, technical provisions, premium and pricing activities, capital adequacy, reinsurance and compliance with related statutory and regulatory requirements.