CIB 2.4.1 Risk management

(1) A Captive Insurer's risk management systems must:
(a) be appropriate to the size, business mix and complexity of the Captive Insurer's operations; and
(b) address all material risks, financial and non-financial, to which the Captive Insurer is likely to be exposed.
(2) The risk management systems maintained by a Captive Insurer must include:
(a) a written risk management strategy approved by senior management, which in the opinion of senior management addresses all material risks to which the Captive Insurer is likely to be exposed;
(b) risk management policies and procedures that in the opinion of senior management are adequate to identify, assess, mitigate, control, monitor and report on the material risks to which the Captive Insurer is exposed; and
(c) clearly identified managerial responsibilities and controls, designed to ensure that the policies and procedures established for risk management are adhered to at all times.