Enterprise Risk Management

QBE Insurance (Singapore) Pte Ltd ("Company") is fully committed to ensuring that we apply a disciplined approach to risk management and that our risk management practices and systems are robust, independent and aligned with global best practices.

Enterprise Risk Management ("ERM") framework is outlined in the Company’s Risk Management Strategy and is supported by frameworks for each risk class, including strategic, insurance, operational, credit, market and liquidity risks. All risk categories are managed through Board governance, an approved risk appetite set by the Board, scenario analysis and stress testing and robust capital management. The ERM framework is applied to provide a sound foundation for reducing uncertainty and volatility in business performance.

The Company's ERM Framework includes the following key components:

  • Risk categories – the key risk types that the Company is exposed to: Strategic risk, Insurance risk, Credit risk, Market risk, Liquidity risk, Operational risk and Group risk;
  • Risk appetite – the level of risk that the Board and management are prepared to take in pursuit of the organisation's objectives. Risk appetite is linked to business strategy;
  • Governance – authorities, accountabilities and responsibilities in relation to risk and management. The Company’s risk governance model reflects a "three lines of defence" approach. Other key components of the Company’s broader governance framework include policy governance, delegations of authority, culture and training. The risk governance framework is linked to the corporate governance framework;
  • Risk management processes – includes Risk and Control Assessment, Internal Loss Events, Stress Testing and Scenario Analysis;
  • Risk culture – observable patterns of behaviour in the way employees perform their work, as it relates to risk management, and the judgements they make; and
  • Capital Management and risk models – the approach for ensuring adequate capital is maintained over time and for monitoring compliance with regulatory and capital requirements and targets. Quantification of risk for business, regulatory and economic capital purposes.
  • Reporting – risk information flows through the governance framework to ensure that there is appropriate management of risk and exposures are monitored in line with the defined risk appetite;