Alandia’s activities, both internal and external, are underpinned by a thorough Enterprise Risk Management System (ERM), ensuring we have the ability to identify, manage and monitor risk at every level of operation. Our ERM supports the execution of Alandia’s entire business strategy by aligning the legal requirements for insurance companies with the decisions made by the Board.
Ultimate responsibility for creation and implementation of the ERM lies with the Alandia Board of Directors (the Board), which actively addresses and controls all risk-related issues to ensure we maintain a good position of solvency. Defined within the overall risk management policy document are the goals, limitations, responsibilities, measurements and principles for monitoring.
In addition to the responsibility for the ERM, the Board also approves an annual Own Risk and Solvency Assessment (ORSA) to ensure that Alandia’s strategic decisions are made with a risk-based approach. This document is reviewed by both the Audit Committee (AC) and the Solvency and Investment Committee (SIC) before it is ratified by the Board.
In order to ensure a good control environment, our corporate governance operates on a ’three lines of defense’ principle — that operate independently of one another:
- First line of defense: the risk owners
- Second line of defense: central functions for risk management, compliance and actuary
- Third line of defense: internal audit procedures
The scope of our operation entails exposure to a wide variety of risks — the most prevalent of these risks are explained below: