OVERVIEW RISK MANAGEMENT FOR FINANCIAL INSITUTIONS
WEEK 1
- Insurance and Insurers
- The Dutch insurance market
- Governance & Risk Management
- The balance sheet of an insurer
- Regulation & Supervision
Objectives
- Explain the basic concept of insurance
- Overview Dutch insurance market
- Introduction of governance & risk management
- Calculation PV of basic life insurance
- Overview Regulation and supervision of insurance
- Name three lines of defence, and recognize the elements of the risk management
WEEK 2
- Solvency II three pillar set-up
- Statement of principles of quantification of the required capital under Solvency II
- ORSA and Model Risk Management
Objectives
- Explanation Solvency II three pillar system
- Name three pillars approach to Solvency II, and explain how it differs from earlier
frameworks
- State key risks modelled in Solvency II pillar 1 and be able to find their specifications
in the Delegated Acts.
- How to set up and conduct ORSA
- Be able to identify scenarios and to map risk
- Discuss the contents typical in an ORSA
WEEK 3
- Risk management decisions
- Basics and types of reinsurance
- Example of the effect of reinsurance
- Future of reinsurance
Objectives
- Discuss the types of risk mitigation available to insurers.
- Possible reactions to identified risks, and assess results
- Introduce the reinsurance and implications for the insurance company
- Which types of reinsurance exist and what characteristics distinguish them
- How new technologies influence reinsurance sector
- Threats and opportunities for future insurers
1
Lectures Risk Management for Financial Institutions
,WEEK 4
- Introduction to pension funds
- Deloitte’s Nine Principle Model
Objectives
- Asset management
- Development law and regulation
- Supervision
- Pension agreements
- Risk Governance
WEEK 5
- Future of Pension Funds
- Deloitte Nine Principle Model
Objectives
- Trends and developments in the Dutch Pension system
- Risk infrastructure & management
- Risk Ownership
- Reporting & Accountability
WEEK 6
- Asset Management
- Investment Management
Objectives
- Explanation on the basic principles of portfolio management
- Financial investment risks
- Regulatory framework
2
Lectures Risk Management for Financial Institutions
, WEEK 1: MINOR RISK MANAGEMENT FOR FINANCIAL INSTITUTIONS
Lecture 1: Introduction to insurance
INSURANCE AND INSURERS
An individual (the insured) can transfer risk to a company (the insurer) in exchange for a set
of payments (the premium)
Premiums are invested for a period of time, and then paid back out to policyholders in the
form of claims
Not all risks can be insured: A risk must satisfy the following criteria to be insured:
- Economically feasible
- It should be calculable
- The loss must be definite
- The loss must be random in nature
- Exposures in any rate class must be homogenous
- Exposure units should be spatially and temporally independent
Different types of Insurance:
- Life insurance (Term insurance, Annuities & pensions)
- Non-life insurance (car insurance or theft insurance)
- Health insurance
- Reinsurance
Life Insurance Non-Life Insurance
Long term contracts Short term contracts
Risk in Life of policyholder Diversity in products; risks
Balance Sheet & Asset Management Profit & Loss driven
Insurance channels
An insurance product can be bought through multiple channels. Client and individuals buy
insurance products Different channels are used to sell insurance policies (direct, labels,
bank, underwriting agent, intermediaries) Insurance company is the risk bearer
(risicodrager)
3
Lectures Risk Management for Financial Institutions
WEEK 1
- Insurance and Insurers
- The Dutch insurance market
- Governance & Risk Management
- The balance sheet of an insurer
- Regulation & Supervision
Objectives
- Explain the basic concept of insurance
- Overview Dutch insurance market
- Introduction of governance & risk management
- Calculation PV of basic life insurance
- Overview Regulation and supervision of insurance
- Name three lines of defence, and recognize the elements of the risk management
WEEK 2
- Solvency II three pillar set-up
- Statement of principles of quantification of the required capital under Solvency II
- ORSA and Model Risk Management
Objectives
- Explanation Solvency II three pillar system
- Name three pillars approach to Solvency II, and explain how it differs from earlier
frameworks
- State key risks modelled in Solvency II pillar 1 and be able to find their specifications
in the Delegated Acts.
- How to set up and conduct ORSA
- Be able to identify scenarios and to map risk
- Discuss the contents typical in an ORSA
WEEK 3
- Risk management decisions
- Basics and types of reinsurance
- Example of the effect of reinsurance
- Future of reinsurance
Objectives
- Discuss the types of risk mitigation available to insurers.
- Possible reactions to identified risks, and assess results
- Introduce the reinsurance and implications for the insurance company
- Which types of reinsurance exist and what characteristics distinguish them
- How new technologies influence reinsurance sector
- Threats and opportunities for future insurers
1
Lectures Risk Management for Financial Institutions
,WEEK 4
- Introduction to pension funds
- Deloitte’s Nine Principle Model
Objectives
- Asset management
- Development law and regulation
- Supervision
- Pension agreements
- Risk Governance
WEEK 5
- Future of Pension Funds
- Deloitte Nine Principle Model
Objectives
- Trends and developments in the Dutch Pension system
- Risk infrastructure & management
- Risk Ownership
- Reporting & Accountability
WEEK 6
- Asset Management
- Investment Management
Objectives
- Explanation on the basic principles of portfolio management
- Financial investment risks
- Regulatory framework
2
Lectures Risk Management for Financial Institutions
, WEEK 1: MINOR RISK MANAGEMENT FOR FINANCIAL INSTITUTIONS
Lecture 1: Introduction to insurance
INSURANCE AND INSURERS
An individual (the insured) can transfer risk to a company (the insurer) in exchange for a set
of payments (the premium)
Premiums are invested for a period of time, and then paid back out to policyholders in the
form of claims
Not all risks can be insured: A risk must satisfy the following criteria to be insured:
- Economically feasible
- It should be calculable
- The loss must be definite
- The loss must be random in nature
- Exposures in any rate class must be homogenous
- Exposure units should be spatially and temporally independent
Different types of Insurance:
- Life insurance (Term insurance, Annuities & pensions)
- Non-life insurance (car insurance or theft insurance)
- Health insurance
- Reinsurance
Life Insurance Non-Life Insurance
Long term contracts Short term contracts
Risk in Life of policyholder Diversity in products; risks
Balance Sheet & Asset Management Profit & Loss driven
Insurance channels
An insurance product can be bought through multiple channels. Client and individuals buy
insurance products Different channels are used to sell insurance policies (direct, labels,
bank, underwriting agent, intermediaries) Insurance company is the risk bearer
(risicodrager)
3
Lectures Risk Management for Financial Institutions
