BWise Introduces the best practice Approach for Solvency II Compliance
New York, NY, ‘s-Hertogenbosch, Netherlands, May 27, 2009 – BWise, the global leader in governance, risk and compliance (GRC) management software, today announced a new approach for developing and embedding the required risk management system for Solvency II compliance. Solvency II demands a risk management system embedded throughout the organization to manage the risks related to the business processes of an insurer to protect investments. According to Luc Brandts, founder and CTO of BWise, “It’s important for European insurance companies to start building qualitative process-based risk management systems integrated with their quantitative systems.”
A process-based risk program is the basis for all other risk management programs like credit, market and liquidity risk. Developing such a program is a time consuming project, because the involvement of the entire business is required and the framework needs to be developed following the evolving regulatory requirements. Most insurance companies have already implemented a quantitative risk management system under Pillar 1 requirements, but now a process-based approach is the answer to requirements under Pillar 2.
BWise has developed a solution for the integration and implementation of Governance, Risk and Compliance initiatives into multinational corporations, using a process-based approach. “Based on our experience, we have developed capabilities within the software to help organizations get business managers and employees involved; to help them identify risks, to realize transparency and to embed the GRC framework into the organization. By using the BWise solution, companies will be able to identify potential business process improvements and create in-depth reports for management,” Luc Brandts explained. Eventually, BWise will help insurance companies to comply with Solvency II and to prove to regulators that they are truly in control of their risks. This will result in the optimal required solvency margin.
BWise, founded in 1994, has many years of experience in implementing internal control and risk management systems for insurance companies. Luc Brandts stated: “Building the risk management framework that is required for Solvency II demands a change in work processes and a risk-based awareness of the business in regards to the processes of each department in the organization. Pillar 2 of Solvency II describes on a high level what the framework must look like, and because each organization has its own unique business processes with unique related risks, they need to build their own risk management framework. This can be accomplished with BWise.” For more information about BWise, please visit www.bwise.com.