Solvency II: Optimizing your Required Solvency Margin
Solvency II requires a risk management system be embedded throughout an insurance company. This system must control all risks related to the business’s processes to protect its investments and assure that adequate capital funding is secured. A process-based risk program provides a stable foundation for risk management programs such as credit, market, liquidity and operational risks. Developing such a program is a time consuming project; the involvement of the entire business is required and the framework must be developed with still evolving regulatory requirements. Most insurers have already implemented a quantitative risk management system, but a process-based risk management system is the best approach to meet the requirements of Solvency II.
Risk management framework
Pillar 2 of Solvency II describes what a framework must look like but each organization has its own unique business processes, procedures and organizational structure and as a result its own unique risks. Insurers must build their own risk management framework. Building such a system demands a change in work processes, procedures and a risk-based awareness of the business, especially regarding the processes of each department in the organization.
Get in control of your organization: with BWise, understand your processes, monitor your incidents and manage your risks
Identify risks, realize transparency
Based on best practices, BWise has developed a new approach for developing and embedding the required risk management system required by the ORSA portion of the Solvency II regulation. BWise has developed capabilities within the BWise software solution to assist organizations involve managers and employees. The system assists employees to identify risks, realize transparency and embed the overall risk framework. You can find more information in the BWise Solvency II Solution Sheet.
Benefits
Using the BWise solution, insurers are enabled to identify potential business process improvements and create in-depth reports for management. Ultimately, BWise assists insurance companies to comply with Solvency II and prove to regulators that they have embedded risk management in the organization and are truly in control of their risks.
BWise, founded in 1994, has many years of experience in implementing internal control and risk management systems for insurance companies.
