Risk Management | Realizing Sustainability Governance | Mutual Benefit | Shin Kong Life Sustainability
Risk Management
Undertaking risks and safeguarding the rights and interests of the policyholders is an important key to maintaining stable operations. In order to effectively plan, monitor, and execute risk management matters, a Risk Management Committee is set up under the Board of Directors. An independent director serves as the convener of the committee, and members meet once a quarter in principle, elevating risk management to a strategic position to show our determination to implement risk management.
SKL Risk Management Committee
Risk Management Execution Methods
Risk management policy as the highest guiding principles for the Company's implementation of risk management. The policy is aligned with the Company's business goals, has clear implementation guidelines, and emphasizes operational risk management. The four pillars of risk management were established on this basis, and operational risks are managed in response to changes in external regulations or the environment.
Furthermore, Shin Kong Life Insurance periodically prepares Own Risk and Solvency Assessment (ORSA) reports, and assesses its current risk management and solvency. We defined material and relevant risks based on the nature, scale, and complexity of risks related to our business, and carried out risk identification, quantified assessment, supervision and management, and results reporting.
- For more details on risk management mechanisms, please refer to SKL information disclosure.
The Pillar of Risk Management
01
Risk Management Culture
Establish a bottom up risks management culture, and instill every employee with the concept of accountability in risk management.
02
Risk Management Mechanism
Management mechanisms can be divided into three levels from the top down, specifically the risk management policy, management guidelines for various risks, and standard operating procedures or standards for various risks. Emergency event reporting mechanisms, crisis management procedures, and business continuity management mechanisms are also established to immediately handle incidents and reduce losses.
03
Risk Measurement Tools
- Establish or improve models for measuring market risk, credit risk, operational risk, and climate change risk.
- Evaluate the impact of abnormal and material events through stress tests.
04
Risk Performance System
Include risk management into performance evaluation.
Risk Management Measures and Response Mechanisms
We are committed to reviewing the possible impacts of changes in the internal and external environments to ensure business continuity. Regular drills are also conducted to make sure that business continuity plans are appropriate and effective and continuously enhanced.
When multiple major emergency events (such as: suspension of information services, large-scale epidemics, and earthquakes) occur, it may cause Shin Kong Life Insurance to suspend operations or prevent a portion of key services from operating. Shin Kong Life Insurance has a Business Crisis Response Team, crisis response measures, and emergency event reporting regulations to minimize the impact of accidents, allowing the Company to maintain sustainable operation, and thereby protect the interests of customers and all stakeholders
The Company has obtained the "ISO 22301 (BCMS)" international standard certification from the British Standards Institute (BSI) in January 2022. Through business impact and risk analysis, the Company identifies critical business activities and takes stock of the resources required to recover these activities (e.g., personnel and equipment), and formulates recovery strategies and business continuity plans.
SDGs
