The Board of the Company has adopted the Risk Management Policy. The intent is to implement a consistent, efficient and effective approach in order to identify, evaluate and respond to key risks that may impact the business objectives of the Company. The specific objective of the Risk management policy is to ensure that all the current and future material risk exposures of the Company are identified, assessed, quantified, appropriately mitigated and managed.
The policy also covers Solvency Management Framework and Risk Retention Framework. While the objective of the Solvency Management framework is to manage solvency through calibrating our participation in each category of risk which would not increase the volatility of capital requirements, Risk retention framework seeks to fix the retention at appropriate level with a view of protecting shareholders’ capital and free reserves due to a loss in a particular risk or due to a catastrophic event affecting several risks retained on its net account. Risks and corresponding mitigating factors are discussed and deliberated at the Risk Management Committee and subsequently the same is placed at the Board Meeting.