Control activities

1. Strategic.

Control activities in Zurich’s strategic risk management are conducted through the governing processes in all the levels of enterprise.

1. Market.

The Group centralizes management of certain asset classes to control aggregation of risk, and provides a consistent approach to constructing portfolios and selecting external asset managers.

1. Credit.

The Group maintains counterparty credit risk databases, which record external and internal sources of credit intelligence.

1. Liquidity.

The Group has Group-wide liquidity management policies and specific guidelines as to how local businesses have to plan, manage and report their local liquidity. This includes regularly conducting stress tests for all major carriers within the Group. The stress tests use a standardized set of internally defined stress events, and are designed to provide an overview of the potential liquidity drain the Group would face if it had to recapitalize local balance sheets

1. Operational.

The group documents and evaluates loss events above a threshold determined by the Zurich Risk Policy, in a Group-wide database. Improvement actions are put in place to avoid recurrence of such operational loss events.

In addition to its overall framework, the Group has specific processes and systems in place to focus continuously on high priority operational matters such as information security, managing business continuity, and combating fraud.

1. Reputation.

The Group endeavors to preserve its reputation by adhering to applicable laws and regulations, and by following the core values and principles of Zurich Basics, the Group’s code of conduct, which includes integrity and good business practice.

Date: 2015-02-16; view: 721