With an insurance firm’s increasing focus on meeting the capital adequacy requirements of Solvency II, it is important that attention is not distracted away from the governance and risk management aspects of the regulations. An effective risk management framework would require the embedding of a risk management culture within the organization. It is important for insurance firms to upgrade their information systems and align risk awareness with the governance, strategy and operations of their business in order to demonstrate to their supervisor that they are operating on a sound basis.
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Added by metricstream on March 9, 2011