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  • RM-A.1 RM-A.1 Purpose

    • Executive Summary

      • RM-A.1.1

        This Module provides detailed Rules and Guidance on risk management systems and controls requirements for insurance licensees. It expands on certain high-level requirements contained in various High-Level Standards Modules. In particular, Section AU-2.6 of Module AU (Authorisation) outlines the systems and controls required as part of the licensing conditions and Principle 10 of the Principles of Business (ref. PB-1.10) requires insurance licensees to have systems and controls sufficient to manage the level of risk inherent in their business.

        Amended: January 2007

      • RM-A.1.2

        This Module obliges insurance licensees to recognise the range of risks that they face and the need to manage these effectively. Their risk management systems should monitor and control all material risks. The adequacy of a licensee's risk management is subject to the scale and complexity of its operations, however. In demonstrating compliance with certain Rules, smaller licensees with very simple operational structures and business activities may require to implement less extensive or sophisticated risk management systems, compared to licensees with a complex and/or extensive customer base or operations.

    • Legal Basis

      • RM-A.1.3

        This Module contains the Central Bank of Bahrain's ('CBB') Directive (as amended from time to time) relating to risk management and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to insurance licensees (including their approved persons).

        Amended: January 2011
        Amended: October 2007
        Added: January 2007

      • RM-A.1.4

        For an explanation of the CBB’s rule-making powers and different regulatory instruments, see Section UG-1.1.

        Added: January 2007