Insurance (prudential standard) determination No. 10 of 2012 - Prudential Standard GPS 220 - Risk Management
Integration of risk management frameworkIntegration of risk management framework and Internal Capital Adequacy Assessment Process
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Integration of risk management framework and Internal Capital Adequacy Assessment Process
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Under GPS 110, a regulated institution is required to have an Internal Capital Adequacy Assessment Process (ICAAP). An ICAAP involves an integrated approach to capital and risk management for a regulated institution, aimed at ensuring that the capital held is adequate in the context of the risk profile and risk appetite of that regulated institution. A regulated institution’s risk management framework and ICAAP must be consistent with one another.
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A regulated institution is not required to duplicate content between its ICAAP summary statement or ICAAP report required under GPS 110 and its RMS. Cross-references are appropriate to facilitate integration between the two documents.