Risk Management
strategy | innovation | expertiseRisk Management
The Directors have established a business ethos in which best practice is the required standard for all operations, both in the commercial interests of the business and to ensure regulatory compliance.
The Directors recognise that the acquired insurance companies have different risk profiles from other members of the Group. This report separately sets out the Directors’ approach to the strategic management of risks within the Group as a whole, as well as the responsibilities and the approach to the management of risk within the insurance companies and the service companies.
Detailed analysis of risk management is included at Note 4 to the Financial Statements.
Regulatory Risk
A number of the companies in the Group are regulated by the FSA. A number of overseas subsidiaries are regulated in the countries in which they operate. Failure to comply with applicable regulations could result in a variety of sanctions. The Directors are responsible for ensuring that best practice is applied to a standard which ensures regulatory compliance.
Loss of Key Staff
The operations of the Group are reliant on key staff. The Directors believe that its Human Resources policies are appropriate to recruit and retain such staff.
Environmental Matters
Whilst the Directors do not consider that the business of an insurance group has a large adverse impact upon the environment, the Directors of the subsidiary companies are encouraged to have regard for their environmental impact.