Aviva 2007 Annual Report Download - page 62
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Please find page 62 of the 2007 Aviva annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Aviva plc
Annual Report and
Accounts 2007
Business review continued:
Risk management
58
Business
review
Our governance structure and policies are regularly reviewed to reflect the changing commercial and regulatory
environment, and our own organisational structure.
The Group’s approach to risk
and capital management
As part of our overall corporate governance framework
described on pages 82 to 87 we operate a risk
management structure, under the leadership of a
Group Chief Risk Officer whose primary objective is to
align the strategic decisions of the group with shareholder
risk appetite. Group Risk has a mission also to manage
risks by protecting the group from events that can
hinder the achievement of our objectives, our financial
performance, or cause us to fail to exploit opportunities.
Risk management incorporates an integrated group-wide
approach to identify, assess, measure, manage,
and monitor the risks to which our businesses are
exposed. Group Risk is also responsible for regulatory
risk and relationship with our regulators worldwide,
for managing the corporate governance and for
business continuity programmes.
We have established a number of policies that
deal with the management of both financial and
non-financial risks. These policies define our risk appetite
and set out risk management and control and business
conduct standards for the group’s worldwide operations.
They enable a broadly consistent approach to the
management of risk by business units. For each policy,
a member of senior management is responsible for
overseeing compliance with that policy throughout
the group.
Risk management is coordinated by a central Group team,
led by the Group Chief Risk Officer. Within our regional
structure, each regional support office is in the process of
appointing regional risk officers will that work under the
leadership and coordination of Group Risk to ensure that the
risk profile within the regions is under the limits established
and agreed by the Group centre. The regional risk officers
work with the business unit risk officers to ensure that the
risk management framework is embedded and working
appropriately in our businesses, and work with the Group
senior management to communicate and coordinate risk
management decisions that are taken at a group level.
Additionally, we operate a number of oversight
committees to monitor aggregate risk data, take risk
management decisions, and to ensure the implementation
of the risk policies. Our risk management committee
structure is set out below.
Group Risk also reports to the Chairman of the
Risk & Regulatory Committee assuring independence of
the function. Our governance structure and policies are
regularly reviewed to reflect the changing commercial and
regulatory environment, and our own organisational structure.
In 2007 we have reviewed our group policy set.
The policies have been refreshed, and set out in consistent
language both the inherent risks Aviva faces and the
minimum standards of control required to mitigate them.
The policies clearly set out the roles and responsibilities of
businesses, regions, policy owners, and group oversight
committees, reflecting the change in organisational structure
that has taken place in Aviva. These policies became
effective on 1 January 2008, and will become fully
embedded during 2008.
Executive
Committee
Board
Asset Liability
Management
Committee
Investment
Operational Risk
Committee
Derivatives
ReservingGeneral Insurance
Life Insurance Capital Management
HR
Business
Protection
Corporate Reputation
& Stakeholder
Engagement
IT Compliance
Audit
Committee
CSR
Committee
Risk &
Regulatory
Committee
Reinsurance
Security
Credit
Risk Committees: Financial and Operating Risk