ICICI Bank 2013 Annual Report Download - page 206

F128
once in quarter and more often if required) reviews the asset liability management position. The company also has
in place Liquidity Contingency Plan that defines the minimum threshold level of liquidity to be maintained. Interest
rate risk may arise due to change in interest rate environment.
15. RISK MANAGEMENT FRAMEWORK OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED
The risk governance structure consists of the Board, Board Risk Management Committee (BRMC), Executive
Risk Committee (ERC) and its sub committees. The BRMC comprises non-executive directors. The Board, on
recommendation of BRMC, has approved the following risk policies:
 • BoardMarketRiskPolicy;
 • BoardCreditRiskPolicy;
 • BoardLiquidityRiskPolicy;
 • BoardInsuranceRiskPolicy;
 • BoardOperationalRiskPolicy;
 • BoardReinsuranceRiskPolicy;
 • BoardUnderwritingRiskPolicy;and
 • BoardOutsourcingRiskPolicy.
The risk policies set out the governance structure for risk management in the Company. The ERC is responsible
for assisting the Board and the BRMC in their risk management duties and, in particular, is responsible for assisting
the Board and the BRMC in their risk management duties and, in particular, is responsible for the approval of all
new products launched by the Company.
The Investment Risk Committee assists the ERC in identification, measurement, monitoring and control of market,
liquidity and credit risks. This includes asset liability management through regular monitoring of the equity
backing ratios and asset liability duration mismatch. The Company has a liquidity contingency plan in place. The
Insurance Risk Committee assists the ERC in identification, measurement, monitoring and control of insurance
risks i.e. persistency, mortality, morbidity and expense risks.
The Operational Risk Committee assists the ERC in identification, measurement, monitoring and control of
operational risks i.e. risk of loss resulting from inadequate or failed internal processes, people and systems, or
from external events. The Outsourcing Committee reports to the ERC on management of outsourcing risk i.e.
risk due to using the services of a third party to perform activities on a continuous basis that would have been
normally undertaken by the Company.
The risk management model of the Company comprises a four stage continuous cycle, namely identification and
assessment, measurement, monitoring and control of risks. The Company’s Risk Policies detail the strategy and
procedures adopted to follow the risk management cycle at the enterprise level. A risk report detailing the key risk
exposures faced by the Company and mitigation measures is placed before the BRMC on a periodic basis.
16. RISK MANAGEMENT FRAMEWORK OF ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED
The objective of the Risk Management Framework of the Company is to ensure that various risks are identified,
measured, mitigated and that policies, procedures and standards are established to address these risks for
systemic response and adherence.
BASEL II – PILLAR 3 DISCLOSURES (CONSOLIDATED)
at March 31, 2013