Features of Risk-based Internal Audit in Insurance Companies

Auditor ◽  
2015 ◽  
Vol 1 (4) ◽  
pp. 40-47
Author(s):  
Брызгалов ◽  
D. Bryzgalov
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Insurance Companies ◽  
Management Models ◽  
Market Risks ◽  
Risk Insurance ◽  
Further Development

The article analyzes the most significant risks in insurance company’s activities, measures to reduce these risks and methods of follow-up internal audit. Key areas of internal audit of risk-management implementation are identifiedfor each type of risk (insurance, repayment and market risks). The conclusion is drawn about further development of internal audit in insurance companies, particularlythe need to develop methods and forms of preparation of quarterly reports on risk management models.

scholarly journals Risk management as increased corporate governance requirement in Italian banks and insurance companies

2019 ◽  
Vol 15 (3) ◽  
pp. 58-69 ◽  
Author(s):  
Rosaria Cerrone
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Services ◽  
Risk Mitigation ◽  
Internal Audit ◽  
Governance Structure ◽  
Insurance Companies ◽  
Financial Intermediaries ◽  
Risk Governance ◽  
Regulatory Requirements

The paper explores how risk management and internal audit functions can be used effectively to strengthen governance frameworks and ensure compliance with new regulatory requirements in the financial services industry. The aim of the paper is the description of the regulatory framework which gives great relevance to risk management both in banks and in insurance companies. A right and efficient risk management scheme, in fact, is based on efficient corporate governance of the financial intermediary. Better corporate governance ensures the achievement of risk management principles. For this, the paper explores the organizational and governance structure of financial intermediaries. The paper is a timely addition to the current discussion around the relevance of sound governance for banks and insurance. It extends the effort to evaluate risk governance standards at these financial intermediaries against regulatory requirements. The paper comes to the conclusion that risk mitigation as the process of reducing risk exposure and minimizing the likelihood of an incident needs to be continually addressed to ensure the business is fully protected and this aim is reached by linking controls to risks, activities, policies, and procedures and to track their effectiveness.

scholarly journals Discussion and Research on Audit Internal Control and PracticeConstruction Based on Risk Management

2020 ◽  
Vol 1 (1) ◽  
Author(s):  
Wenquan Shi
Keyword(s):  
Risk Management ◽  
Control System ◽  
Internal Control ◽  
Rapid Development ◽  
Internal Audit ◽  
Audit Risk ◽  
Chinese Enterprises ◽  
Market Risks ◽  
Foreign Countries ◽  
The Relationship

With the rapid development of the market economy in China, how to strengthen audit risk management and enable enterprises to improve the internal audit control system to cope with complex and severe market risks has become the focus of current social concern. In foreign countries, although audit internal control and risk management-based practice construction are relatively mature, China’s construction of a risk-oriented internal audit control system has just begun, and needs to be further improved. Therefore, strengthening audit internal control and practice construction based on risk management is urgent for Chinese enterprises. This article starts with the connotation of internal audit control and risk management, expounds the relationship between risk management and internal audit control, and discusses the internal control of audit and practice construction based on risk management. In addition, it also analyzes the current situation of China’s construction, and puts forward practical countermeasures to strengthen the internal control of China’s corporate auditing.

scholarly journals Features of insurance risks’ classification as the basis of risk management of insurance companies in the financial crisis

2021 ◽  
pp. 15-17
Author(s):  
Nataliia Bondar ◽  
Viktoriya Fursova
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
State Government ◽  
Global Financial Crisis ◽  
Risk Identification ◽  
Insurance Companies ◽  
Insurance Risk ◽  
European Standards ◽  
The Global Financial Crisis ◽  
Risk Insurance

Since the global financial crisis had impacted on all aspects of insurance companies' activities, it became necessary to focus on the activities of insurers and further improve the integrated risk and capital management of global and regional insurers. The purpose of the research is to analyze differences between national and European standards for risk identification in Ukrainian insurance companies, and to provide suggestions for improving the mechanism of risk insurance management. Using the method of comparative analysis and the method of content analysis of national and international solvency standards for insurance companies, the national characteristics of the types of insurance risks and the organization of the implementation of European legislation in domestic practice were determined. By the method of generalization and deduction, the key challenges for improving the effectiveness of insurance risk management in Ukrainian practice were identified. The results of the study shows the necessity to implement a unified system of insurance risk management in Ukrainian practice, which contents national and global characteristics of the functioning of insurance markets. The results of the research have significant practical implications for insurance companies and state government insurance market and can serve as a basis for improvement of theoretical principles concerning the identification of insurance risks and implementing European experience of insurance companies in national practice.

FORMALIZED DESCRIPTION OF THE PROCEDURE OF INFORMATION SYSTEM RISK MANAGEMENT

2018 ◽  
pp. 61-70
Author(s):  
Svetlana Sergeevna Kozunova ◽  
Alla Grigorievna Kravets
Keyword(s):  
Information System ◽  
Risk Management ◽  
Negative Consequences ◽  
Management Procedure ◽  
System Risk ◽  
Weak Points ◽  
Formalized Description ◽  
Relationship Of ◽  
The Relationship ◽  
Further Development

The article highlights the aspects of risk management in the information system. According to the analysis of the work of Russian and foreign scientists and world practices in the field of risk management, it is stated that there is a need to improve the effectiveness of risk management of information system and to develop a method for managing the risks of the information system. As a solution to the problem of effective risk management of the information system, there has been proposed a formalized procedure for managing the risks of the information system. The scientific novelty of this solution is the use of decision space and optimization space to reduce risks. This procedure allows to assess the damage, risk and effectiveness of risk management of the information system. The risks of the information system are determined and analyzed; a pyramidal risk diagram is developed. This diagram allows you to describe the relationship of risks with the components of the information system. The negative consequences to which these risks can lead are given. The analysis of methods and approaches to risk management has been carried out. Based on the results of the analysis, the methods GRAMM, CORAS, GOST R ISO / IEC scored to the maximum. The weak points of these methods and the difficulty of applying these methods in practice are described. The developed formalized risk management procedure to control the risks of information system can be used as management system’s element of the information security quality that complies with the recommendations of GOST R ISO / IEC 27003-2012. The prospect of further development of the research results is the development of management systems of risk of information system.

Effect of Financial Control Mechanisms on Performance of Income Generating Units in Selected Public Universities in Kenya

2019 ◽  
Vol 3 (V) ◽  
pp. 286-304
Author(s):  
Shadrack Musunkui Towett ◽  
Isaac Naibei ◽  
Williter Rop
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Public Universities ◽  
Management Strategies ◽  
Internal Audit ◽  
Simple Random Sampling ◽  
Target Population ◽  
Control Measures ◽  
Financial Control ◽  
Control Mechanisms

In an attempt to bridge the gap between the budgetary allocations and actual expenditures most universities have started income generating units with the aim of boosting their operational expenses. Whereas there is the potential of the use of Income Generating Units (IGUs) to generate additional funds, most universities still experience challenges in full implementation and realization of the revenue goal. This study therefore sought to determine the financial control mechanisms affecting performance of income generating units among selected public universities. The study sought to determine the effect of internal controls, credit policies, financial risk management and internal audit on performance of income generating units in selected universities. Targeted population was all the 290 employees in the IGU departments of selected public universities. The respondents were sampled using simple random sampling so as to enable equal representation of the target population without any biasness. Data collection was done using the questionnaire to ensure sufficient data was collected from the respondents. Descriptive statistics assisted in the determination of respondent’s views and opinions on every variable. Qualitative data was analysed using content analysis into meaningful, precise and comprehensive statements and presented in quotations. Data analysis was done using SPSS version 21 and data presented in form of figures and tables. The study ensured that all ethical considerations were considered by the study. The findings were that most employed Income Generating Units in Public Universities were Collection of rental fees, Evening and executive programs and Trainings of both short and long courses while the least was established to be Sales of memorabilia and books. All the financial control mechanism investigated namely internal audit, internal control measures, risk management strategies and credit policies had large extents of adoption in the selected universities. The results of the regression analysis showed that the financial control mechanisms investigated had a significant positive relationship on performance of the IGUs. Specifically, 47% of the variation of the performance of IGUs was established to be explained by the studied factors. The study concluded that the performance of the IGUs among the selected public universities was largely accounted for by the implemented financial control measures. Therefore effective financial control mechanisms is concluded to lead to better IGU performance whereas shortcomings in the financial control mechanisms is concluded to lead to diminished returns in the IGUs. The study recommended that the management in charge of the IGU department in the public universities to prioritize the formulation, implementation and monitoring of financial control mechanisms in the IGUs. To facilitate effective financial controls, the study recommended that the management especially those in the audit section to conduct regular checks and inspections on the IGUs. Additionally, frequent reforms were recommended to address the shortcomings experienced in integrating financial control measures in IGUs.

MENGELOLA RESIKO DENGAN PRODUK DERIVATIF

2008 ◽  
Author(s):  
Dandes Rifa
Keyword(s):  
Risk Management ◽  
Value At Risk ◽  
Foreign Currency ◽  
Balance Sheet ◽  
Cash Flows ◽  
Market Risks ◽  
Hedging Strategies ◽  
Operational Hedging ◽  
Potential Risks ◽  
Derivative Products

The main objective of risk management is to minimize the potential for losses (risk) arising from unexpected changes in currency rates, credit, commodities and equities. One of the risks faced by companies is market risk (value at risk). This article aims to explain that risk management can be one of them by using derivative products. Derivative transactions is very useful for business people who want to hedge (hedging) against a commodity, which always experience price changes from time to time. There are three strategies that can be used to hedge the balance sheet hedging strategy, operational hedging strategies and contractual hedging strategies. Staregi contractual hedging is a form of protection that is done by forming a contractual hedging instruments in order to provide greater flexibility to managers in managing the potential risks faced by foreign currency. Most of these contractual hedging instrument in the form of derivative products. The management can enhance shareholder value by controlling risk. -Party investors and other interested parties hope that the financial manager is able to identify and manage market risks to be faced. If the value of the firm equals the present value of future cash flows, then risk management can be justified. 

Effect of Financial Risk Management on the Performance of Insurance Companies in Rwanda (2015-2019)

2020 ◽  
Author(s):  
Simon Pierre NTIVUGURUZWA ◽  
Jean Bosco Ndikubwimana ◽  
Dukunde Angelique ◽  
JMV MPIRANYA ◽  
Frederic Mpambara ◽  
...  
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Insurance Companies ◽  
Financial Risk Management

scholarly journals Fishery Logistics Insurance Management Schemes

2012 ◽  
Vol 6-7 ◽  
pp. 773-777 ◽  
Author(s):  
Yan Ling Wang
Keyword(s):  
Supply Chain ◽  
Insurance Contract ◽  
Insurance Companies ◽  
Supply Chain Risk ◽  
Exact Probability ◽  
Supply Chain Contract ◽  
High Expectations ◽  
Management Schemes ◽  
Contract Signing ◽  
Risk Insurance

The intense competition of global markets and consumers' high expectations forced enterprises to invest and concentrate on the relationship with their customers and suppliers. The growing interest in supply chain management, both in developed and developing countries in the fisheries. With the catastrophic events in the fisheries supply chain, the diversity of the fisheries risk and insurance issues become increasingly important. However, participants in the supply chain is a separate and independent economic entities, and only consider their own interests. In this article, the fisheries supply chain insurance contract on the basis of the model and the diversity of the fisheries risk and insurance policy issues, the behavior of each participant. In this article, the diversity of the fisheries supply chain risk and insurance process, the lack of sufficient knowledge of the fisheries supply chain contract signing or the exact probability of the insured event, the fisheries supply chain risk insurance companies use the information provided by the fisheries supply chain contract signature the signing of the contract or the behavior of the fisheries supply chain insurers of people insured or fisheries supply chain and fisheries supply chain in order to establish the parameters of the insurance contract of the fisheries supply chain.

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