Insurance (prudential standard) determination No. 1 of 2006 - Prudential Standard GPS 220 - Risk Management
Objective and key requirements of this PObjective and key requirements of this Prudential Standard
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Objective and key requirements of this Prudential Standard
This Prudential Standard aims to ensure that a general insurer has systems for identifying, assessing, mitigating and monitoring the risks that may affect its ability to meet its obligations to policyholders. These systems, together with the structures, processes, policies and roles supporting them, are referred to in this Prudential Standard as a general insurer’s risk management framework.
To meet the key requirements of this Prudential Standard a general insurer must:
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have in its risk management framework a documented Risk Management Strategy and also include sound risk management policies and procedures and clearly defined managerial responsibilities and controls;
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submit its Risk Management Strategy to APRA on an annual basis and re-submit the Risk Management Strategy when any material changes are made;
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have a dedicated risk management function (or role) responsible for assisting in the development and maintenance of the risk management framework;
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submit a three-year Business Plan to APRA and re-submit after each annual review or when any material changes are made;
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submit a Risk Management Declaration to APRA on an annual basis; and
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submit a Financial Information Declaration to APRA on an annual basis.