Risk management

Risk management at Sb Life Insurance means identifying, assessing, measuring, restricting and monitoring any risks arising from or essentially related to business activities. Risk management is intended to identify any threats and opportunities related to the implementation of the company strategy.

Internal operational guidelines are used to steer Sb Life Insurance’s business operations and processes. Compliance with the internal guidelines as well as the updating process of the guidelines is monitored. All decisions and significant business operations are documented and archived. An essential part of risk management is executed in daily supervision.

The Board of Directors of Sb Life Insurance is responsible for organising risk management and approves the principles and liabilities of risk management. The Board of Directors approves risk-specific plans and any limitations to risk taking annually. 

The roles, responsibilities and duties of Sb Life Insurance comply with the “three lines of defense” model. The first defense line (business and support functions) is responsible for compliance with the risk management principles approved by the company’s Board of Directors. The first defense line is in charge of implementing risk management procedures in accordance with their authorisation. The independent monitoring functions of the second defense line (risk management, compliance and actuarial functions) supervise the implementation of risk management in the first line of defense. 

The purpose of independent risk control is to ensure and supervise that risk management is at a sufficient level with regard to the quality, scope, variety and risks of the company’s business. The risk management function is intended to assist the Board of Directors and the executive management in organising sufficient risk management and monitoring the effectiveness thereof.

The compliance function is responsible for ensuring that the company complies with legislation and guidelines and regulations issued by the authorities. The compliance function is also responsible for monitoring that the company’s operations comply with internal instructions and other instructions in the insurance industry. 

The actuarial function is responsible for managing methods and practices related to the appreciation of insurance technical reserves in connection with accounting and solvency calculations and for participating in company risk management, specifically risk modelling and measurements and the preparation of risk and solvency calculations.

Due to the independence of its operations, the third defense line or internal inspection ensures that the Board of Directors and executive management have available a correct and comprehensive overview of the profitability and efficiency of the company’s operations and the state of its internal control and the various types of risks related to its operations.