Risk Assessment & Monitoring
"To provide ready access for brokers and clients, we empower our skilled underwriters to accept risk within a well developed control framework."
James Illingworth - Chief Risk Officer
The primary objective of the Risk Assessment and Monitoring Department is to understand, analyse and report upon the status of risks that the group faces, to ensure that they are managed as effectively as possible and that appropriate levels of capital are held to cater for them.
Organisation chart
Principal risks and uncertainties
Amlin categorises risk closely to that as laid out by the Financial Services Authority (FSA). The risk categories and a brief commentary for Amlin are discussed below:
| Underwriting risk: | The risk of loss arising from the inherent uncertainties in the occurrence, amount and timing of insurance liabilities and premiums. |
| Credit risk: | The risk of loss if a counterparty fails to perform its obligations or fails to perform them in a timely fashion. |
| Market risk: | The risk arising from fluctuations in values of, or income from, assets, in interest rates or in exchange rates. |
| Liquidity risk: | The risk arising from insufficient financial resources being available to meet liabilities as they fall due. |
| Operational risk: | Risk resulting from inadequate or failed internal processes, people and systems, or from external events, including regulatory control failures. |
| Strategic risk: | Risk associated with the appropriateness of business strategy in the face of the current and future commercial, political, legislative and economic environment. |
The detailed risk disclosures for underwriting, credit, market and liquidity risk are set out in detail in the financial statements.