Page 33 - Risk Management in current scenario

capital on an annual basis for reporting purpose only. Life companies also
submit their assets and liability position on quarterly basis.

All the insurance companies must have Assets and Liabilitie Committee
and Risk Management Committee as a part of IRDA Governance. Some
companies in the Indian market are following risk management processes
prevalent in foreign partner country.

Future of Risk Management in India.
The future of risk management in India is likely to increase due to increase
in oversight required by foreign player meeting the requirement under
solvency-II. The Indian regulator may also increase focus on risk
management to increase oversight. The opportunities in the risk
management area is in other financial institution such as banks are there
in liquidity risk, credit risk, interest rate risk, operational risk etc.

Success factor
On the individual front, the key success factor for risk management is the
understanding of the risk management tools and good knowledge of
business and its products along with good communication skills. Risk
management is a partnership game and not a police man role. Therefore
attitude inter personal skills are equally important in the overall success
of risk management success.

"Risk management is a partnership game and not a police man role.

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