Risk management is an integral component of prudential management and good corporate governance. It represents a modern approach to business management under a competitive market environment in which businesses and technology are constantly evolving. This dynamism creates risks which may hinder the company in achieving its business objectives.

       Muang Thai Life Assurance PCL. (MTL) recognizes the importance of an effective risk management system. The company has established a well-defined governance structure to manage the risk of the company in accordance with international practices to best protect the interest of all stakeholders. The risk management activities aim to promote risk awareness throughout the organization and to enhance our capabilities to manage risk effectively; allowing the company to achieve its objectives in line with its mission and vision.

       MTL has set the guideline for managing risks as follows:

       1) Risk Governance Structure: MTL has established the governance structure that support effective risk management. Risk management function is independent from other work functions. MTL has clearly specified roles and responsibilities includes reporting process that support risk culture in the organization.
       2) Risk Identification: MTL has a process of identifying the risks that the company is exposed to. The Risk Appetite and Risk Tolerance is determined by its ability to manage these risks.
       3) Risk Assessment: MTL has used and developed several tools to measure and evaluate the risks faced by the company.
       4) Risk Response: MTL has established guidelines and procedures to respond to the risks. As part of risk response, MTL may consider avoiding certain risks that we feel we cannot manage effectively. On the other hand, MTL may consider using risk management tools or strategies to mitigate or transfer the risks. The guidelines and procedures to respond to the risks must be consistent with the nature of the business and the availability of personnel and information systems of the company.
       5) Monitoring and Report: MTL has structured the risk reporting system to facilitate consistent and accurate risk information flow from risk monitoring persons to senior management and the Board of Director.
       6) Risk Management of Core Activities: MTL has established the risk management process for the core activities defined by Office of Insurance Commission that is consistent with the risks and complexity of the company. The process should be able to reflect the underlying risk, measure the risk appropriately, efficiently manage the risks, and monitor and control the risks from these core activities.

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