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) requiresinsurance licensees to have systems and controls sufficient to manage the level of risk inherent in their business.Amended: January 2007RM-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.
