PIN 2.2.1

An Insurer's risk management systems must:

(a) be appropriate to the size, mix of business and complexity of the Insurer's operations;
(b) be based on an enterprise-wide risk management approach, which integrates risk management with the conduct of its business and operations;
(c) address all material risks, both existing and potential risks, financial and non-financial, to which the Insurer is exposed or likely to be exposed;
(d) describe the relationships between the Insurer's risk tolerance limits, its capital requirements, economic capital and the processes and methods for assuming, pricing, and monitoring risk; and
(e) be supported by adequate risk management policies and procedures which explain the risks covered, the measurement approaches used, and the key assumptions made.