EXAMPLE PAGE - ANNUAL REPORT - THE SWEDISH CLUB - Flipbook - Sida 59
NOTES - FINANCIAL STATEMENTS
Note 2. Risk management and risk analysis
Risk management
The Swedish Club´s risk management is
carried out with the help of the company's
risk management system, which is an
integral part of operations. Its goal is to
create and maintain a good ability to
identify, measure, manage, control,
monitor and report risks that the Club is,
or could become, exposed to. The risk
management system is in line with the
risk management directive adopted by
the Board.
The Club has developed an Internal
Capital Model (ICM) for quantifying its
risks. The model is used as a control
mechanism for management, the Own
Risk and Solvency Assessment (ORSA)
process and in conjunction with efforts to
evaluate and optimise the Club’s
reinsurance programme. It is also used in
the creation of new products.
The Swedish Club’s risk management
efforts lower the likelihood of undesirable
operational and financial results. As such,
they are a critical component of the Club’s
ability to achieve its business goals.
The Club strives to create a culture that
fosters awareness and encourages
people at all levels in the organisation to
help identify and quantify both current
and future operational risks. As part of its
risk management efforts, all departments
are encouraged to discuss the risks that
they are aware of, along with proposing
suggestions on how to prevent, eliminate
or manage them. This is done via a
systematic, regularly occurring
documentation of risks and ongoing
reporting of them.
Structure of corporate
governance and allocation of
responsibilities
Board, so that the Board can make wellinformed decisions.
Annual General Meeting
The AGM is the highest decision-making
body and it consists of all members. The
AGM elects the Board of Directors and
members of the Nomination Committee.
It also adopts the income statement and
balance sheet contained in the annual
report, elects the external auditors and
addresses other matters that fall within its
realm of responsibility.
Board of Directors
The Board has ultimate responsibility for
ensuring that the Club complies with the
prevailing laws and regulations. It also
creates the strategic guidelines and
instructions for the Club. Furthermore, the
Board ensures that suitable internal
instructions for risk management and risk
control exist.
Managing Director
The Managing Director is appointed by
the Board and is responsible for the daily
management activities of the Club.
Organisation and internal control
The Board continually monitors the Club’s
operations, financial result and asset
management. The Board maintains
regular contact with all of the committees
that have been set up, as well as with the
senior management team and other key
functions. The Board must pro-actively
request information and challenge it, as
required. The work, obligations and
responsibilities of the Board are
described in its rules of procedure. The
Board consists of 24 members, including
the Managing Director and two employee
representatives.
Nomination Committee
The Club's nomination committee is
responsible for suggesting new Board
members and members of the nomination
The Club applies the standard model for
committee, who are then considered by the
calculating the regulatory capital
AGM. The committee also proposes the
requirement. Reporting is based on the
level of remuneration to Board members. In
quantitative reporting templates that have total, the committee consists of three
been adopted by the EU supervisory
members, one of whom is a Board
authority, EIOPA.
member.
A Solvency and Financial Condition
Report (SFCR) is available on the Club’s
website. It describes the regulatory
solvency and capital requirements
stipulated in the Solvency II Directive.
The committee also reviews
recommendations and engages in
dialogue with the senior management
team on key areas such as changes in
investment allocation, audit, compliance
with regulations, premiums and
receivables. It monitors the results of
investment activities and makes
decisions concerning investment
allocation within the limits stated in the
Club’s investment directive. The Finance
& Audit Committee consists of seven
members, including the Managing
Director and Director of Finance, Risk
Management & IT.
Finance & Audit Committee
The Finance & Audit Committee is a
subgroup of the Board of Directors. It
serves as a link between the Board of
Directors, senior management and the
auditors on financial issues. It also
prepares issues to be considered by the
The Club’s organisation consists of the
Managing Director, central functions and
five geographic teams. The geographic
teams are mostly independent in terms of
daily operations. However, many of the
organisation’s functions have been
centralised, as illustrated in figure 2.1.
The work and responsibilities for each
component of the organisational
structure must be well-defined, allocated
and coordinated. Relevant processes are
described and documented in the Club’s
management system.
The Club has a senior management team
consisting of six members.
Internal control
There are three levels of internal control
applied to the organisation. The first level
of internal control occurs through the
operational functions, as illustrated in
figure 2.2. The second and third levels are
independent of the operational functions.
The second level consists of risk
management, the actuarial function and
regulatory compliance. The third level,
which is completely independent of all
other functions, is internal audit, with an
internal auditor that has been appointed
by the Board.
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