CIB 2.4.2 Management of particular risks

Without prejudice to the generality of Rule 2.4.1, a Captive Insurer must develop, implement and maintain a risk management system to identify and address risks, including but not limited to:

(a) reserving risk;
(b) investment risk (including risks associated with the use of Derivatives);
(c) underwriting risk;
(d) market risk;
(e) liquidity management risk;
(f) credit quality risk;
(g) fraud and other fiduciary risks;
(h) compliance risk;
(i) outsourcing risk; and
(j) reinsurance risk. Reinsurance risk refers to risks associated with the Captive Insurer's use of reinsurance arrangements as Cedant.