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Risk Management
l What is the level of connectivity between the product
development area and other areas such as valuation,
investment department, corporate, etc.? How does the
company price its products and how does it know that it
is compensated to the level of risks being taken?
l Describe your ALM and what are you doing to optimize
your returns?
l Describe the major options offered in your liabilities and
how are those mitigated or accounted for in the company's
economic capital?
The COSO report
n In 2001 the Committee of Sponsoring Organizations (COSO)
of the Treadway Commission, led by Pricewaterhouse
Coopers, initiated a study to develop practices for managing
risk across an organization.
By identifying the key issues and proposing guidelines and
applications, COSO formalized a reporting structure to support
Enterprise Risk Management.
n The COSO methodology inspires confidence by offering a
definite framework for ERM. This approach produces a
dynamic audit of the risks identified.
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