Deloitte & I.VW-HSG
Overview: Globalization as well as technical, political and social changes are resulting in insurance companies being increasingly exposed to greater and
more complex risks. Thus, to successfully operate in the market, insurers are being compelled to take considered and controlled risks.
Consequently, their need for active risk management is increasing.
Within the framework of active risk management, the subject of “operational risks” (OpRisk) is increasingly growing in relevance for
insurance companies. In addition to new value-adding strategies, such as outsourcing/offshoring or the necessity of comprehensive risk
management in terms of Enterprise Risk Management (ERM), there are first and foremost regulatory demands (e.g. Solvency II, Swiss
Solvency Test and the Sarbanes-Oxley Act), which require to manage this risk category. These legal regulations are at present in the initial
stages of development and have partially still not been specified in detail with regard to concrete requirements. For numerous insurance
companies, the resulting leeway with reference to the development of Operational Risk Management (ORM) thus leads to the need for
intensive and detailed contemplation and discussion around the subject of OpRisk.
During the course of these developments, insurers will be faced with the following questions:
- What driving factors led to the introduction of ORM?
- What is the understanding of OpRisk?
- What components of the ORM framework have been implemented and how are responsibilities assigned?
- What developments can be expected and where is potential for improvement?
The present study will provide positive answers to these questions. Furthermore, the results serve to derive recommendations for action by
management. The study serves as a contribution to the discussion and provides knowledge with regard to OpRisk in the German-speaking
insurance sector.
We would like to thank all those who, by their participation, contributed to the success of this study.
