Who are we?
Risk Management is a global team with members in all major AGCS locations. On a partnership basis, highly motivated experts with diverse backgrounds work in dynamic teams towards a common goal of protecting AGCS from significant unexpected losses. Strong analytical thinking combined with excellent communication skills help them find the appropriate solutions balancing business needs and effective risk management.
What are we responsible for?
Managing risk is one of the core activities in the insurance business, and indeed everybody at AGCS conducts some kind of risk management in the day-to-day work. One of the roles of the Risk Management function is to provide support in managing these day-to-day risks and to keep related activities in line with the AGCS risk management approach.
Furthermore, by assuming a holistic view the Risk Management function makes the overall AGCS risk and control landscape transparent. This helps appropriately and consistently prioritize actions required to mitigate these risks in close collaboration with the business functions. It also ensures that the AGCS risk profile remains within the tolerance level defined by the AGCS Board of Management.
Finally, Risk Management interprets and implements external risk management requirements at AGCS in an efficient manner, in order to ensure that AGCS meets applicable regulatory requirements while being able to write business in a capital-efficient manner. A prominent example is Solvency II, the new European solvency regime AGCS is operating in.
What do we do?
A typical risk management process follows these steps: Identify risks; assess them; respond as appropriate; monitor and report. The most important risk management process within Risk Management is the Global Top Risk Assessment: On a quarterly basis, Risk Management performs these steps in close collaboration with business experts and finally discusses the risk profile with the respective board member being responsible.
The Risk Management team deals with all types of risks - relating to investments, reserves, premiums and claims as well as to AGCS’ own operations. Risks relating to the latter are typically managed through controls. Important controls are formalized under the internal control system of AGCS which is maintained by Risk Management including quality assurance, so that the AGCS Board of Management can rely on effective operations.
Risk Management also requires an understanding of the capital needed to sustain our business activities. Based on an internal risk capital model, economic capital requirements are measured and reviewed, including an assessment of business implications. Customers of Risk Management are mainly internal but also external parties such as local regulators or external auditors.