Unit 2 Flashcards
What is PIML and why is it used
Plan, implement, measure, learn it is indicated a more structured and analytical approach. It is a stage involved in achieving successful risk management and structured by using PIML
What does RASP stand for
Risk - ARCHITECTURE, STRATEGY, PROTOCOLS
What does RASP DO?
In order to provide a simple explanation of the scope of risk management frameworks.
ERM COSO CUBE? what does it go?
Front face is management process, too describes 4 categories of organisational activities. The side face shows implementation process of the standard. It indicates that ERM begins at entity level and then is cascaded downwards across the organisation. It is fully implanted version of ERM has to be embedded in all roles, operations and activities of the enterprise.
What is an ICCAP and where does it sit within the Basel 3 pillars?
Internal capital adequacy assessment process report. It sets out assessment of the overall capital adequacy in relation to the risk profile, and develop a strategy for maintaining or achieving required capital levels. - PILLAR 2
What is pillar 1 of Basel?
Addresses capital adequacy, which is the relationship between eligible capital and risk weighted assets. It sets out ways which RWAs can be calculated and what constitutes eligible capital, in relation to credit, market and operational risks.
What is pillar 2 of Basel?
Sets out the requirements for the supervisory review process to access the capital adequacy for risks covered in pillar 1 as well as other risks. ICCAP
What is pillar 3 of Basel?
Outlines requirements for disclose of information about a banks risk management framework and processes as well as risk exposures of 3rd parties. Banks should publish a pillar 3 disclosure report annually.
Where is solvency 11 Europe or international?
Europe
Solvency 11 is also set under 3 pillars what is pillar 1?
Sets out quantitative requirements including the level of capital that an insurer is expected to hold. SCR - solvency capital requirement and MCR - minimum capital requirement.
What is solvency 11 pillar 2?
Sets out quantitative requirements including governance, supervisory and own risk solvency assessment ORSA - this is a risk management system that the insurer must a missed the risks it faces, manage them and identify how much capital is required to run the business.
What is solvency 11 pillar 3?
Sets out the reporting disclosure requirements for solvency 11 including the reporting to the regulator through the solvency and financial condition report and the report to the supervisors (regulators)
What does LILAC stand for
Leadership, involvement Learning, accountability, communication.
