Getting ahead of the game
It's official: Solvency II will contain an operational risk charge. But are insurers up to speed with the technology needed to measure the risk? Clive Davidson reports
Operational risk management is an evolving practice in insurance companies. The Solvency II regulatory regime, which introduces a capital charge for operational risk, is prompting companies to take a more formalised and structured approach to their risk management, with the long-term goal of a quantified assessment of operational risk capital. In doing so, the insurance industry is following banking, where the Basel II capital accord drove banks to move in this direction a few years earlier.
Insu
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