1. The objective of the Rules contained in Chapter 2 is that Insurers should control their own risks through sound and prudent risk management systems, such as to minimise the likelihood that events, internal or external to the Insurer, cause the Insurer to fail financially or operationally.
2. The risk management systems required by the Rules should be integrated with the operational processes of a business. Insurers are expected to instil a strong risk control culture throughout their operations, so that material risks and potential problems that emerge can be identified, managed and promptly resolved in the normal course of business operations. The absence of such a control culture is likely to be taken as evidence that more specific control objectives are unlikely to be attained.