The objective of Catlin’s Enterprise Risk Management (‘ERM’) initiative, launched in 2009, is to integrate the existing risk programmes into a more holistic, embedded Group-wide risk and capital management framework. The strengthened framework will lead us to being able to make more informed strategic and operational decisions that optimise the risk/reward relationship and enhance capital efficiency.
Our ERM initiative is based upon a transparent communication of risk management and risk appetite, using an economic capital approach.
It is intended to deliver a full range of benefits that ensure Catlin retains focus on the risk/reward relationship. These include:
- an improved understanding of all risks and related capital requirements
- better decision making and enhanced profits driven by the ability to assess and allocate the overall capital requirement using sophisticated capital modelling techniques
- the selection of the most appropriate strategy from the range of available business decisions with direct reference to the Group’s risk appetite, optimal underwriting portfolio, capital requirements, investment strategy and resultant expected profit and return on equity
- stronger internal and external risk management communication
- the maintenance of a consistent risk management approach throughout the Group as the business continues to grow and evolve
- continuing to meet existing and evolving regulatory risk and capital requirements, including Solvency II.
This programme of works is supported by a comprehensive internal and external communications plan. The aim is to ensure that a strong culture based on risk control and risk management continues to be embedded throughout the Group.