8. Risk management aims for 2013


8.1. Internal monitoring system

Finalising the implementation of a Group-wide internal control system is a major project for the risk management process in 2013. The objective of an internal control system is to secure efficient process workflows, as well as availability and reliability in financial and non-financial reporting.

In addition to prudential requirements, the UNIQA Group places a particularly high value on transparent and efficient processes, which are a prerequisite for attaining the strategic goals defined in the course of the UNIQA Group’s reorientation.

The ICS guidelines, which were adopted at both the Group and company level, define the minimum requirements of an internal control system in terms of methods and scope. Central elements of these guidelines are in accordance with the framework that was developed by COSO (“Committee of Sponsoring Organizations of the Treadway Commission”).

The ICS guidelines stipulate that the internal control system must be implemented for the following core processes (and their subprocesses):

  • Accounting
  • Asset management
  • Product development
  • Collection/disbursement
  • Underwriting
  • Processing of claims
  • Risk management process
  • Reinsurance
  • IT processes

The objective is to recognise in a timely manner risks that can occur during a process and prevent them. After the risk identification phase, key controls should be defined for all major risks, and these controls should reduce or eliminate risks. In addition to accounting processes, in which we want to minimise the risk of errors in the consolidated statements by means of appropriate controls, we also place great emphasis on error-free process procedures from the core business.

Our aim for 2013 is to embed the internal control system in everyday processes on the basis of documentation which is already available. In order to ensure this happens, a monitoring system has been established at all process and organisational levels, which is to be used regularly to check the quality of controls. Furthermore, our ICS system is audited each year and adjusted as necessary.

Description of the most important features of the internal control system (ICS) with regard to the accounting process according to Section 243a paragraph 2 of the Austrian Commercial Code

In terms of accounting processes, an ICS process has been defined and in operation since 2009.

The goal of the accounting process internal control system is to implement controls to ensure that a proper report can be reliably produced despite the identified risks. In addition to the risks described in the risk report, the RMS also deals with additional risks as well as those in operational processes, compliance, internal reporting, etc.

Organisational structure and controlling scope

The accounting process of the UNIQA Group is standardised throughout the Group. Compliance guidelines, operational organisation manuals, balance sheet and consolidation manuals exist to ensure a reliable process. Processing is largely centralised for domestic affiliated companies. For international Group companies, the accounting process is largely decentralised.

Identification and controlling of risks

An inventory of the existing risks was taken and appropriate monitoring measures were defined for the identification of existing risks. The most important checks were defined in guidelines and instructions and coupled with an authorisation concept. The checks cover both manual coordination and reconciliation routines as well as acceptance inspections of system configurations for connected IT systems. Identified risks and weak points in monitoring the accounting process are reported quickly to management so that corrective measures can be taken. The procedure for identifying and monitoring the risks is regularly evaluated by an independent external consultant.

8.2. ORSA (Own Risk and Solvency Assessment)

8.3. Asset liability management (ALM)/market risk management

8.4. Reinsurance

8.5. Actuarial practice – Group actuarials

© UNIQA Group 2013
 
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