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Risk Management Policy

Risk Management Policy

    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.
2) Risk Identification: MTL has a process of identifying the risks that the company is exposed to.  The Risk Appetite Statement 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.

1. Strategic risk
Strategic Risk is the risk that arises from (1) the consequent of choosing to execute a particular strategy and (2) the failure associated with the strategy implementation. MTL classifies strategic risks into corporate planning risk and strategic implementation risk.

2. Operational risk
Operational Risk is the risk of loss resulting from failed, inadequate or inappropriate internal processes, people, systems and/or external events which impact to company operation or financial statement. This definition excludes strategic and reputational risk.

3. Insurance risk
Insurance risk is the risk from fluctuation of claim frequency, claim severity or time of claim occurrence that deviate from the pricing and reserving assumptions. Key assumptions include mortality rate, lapse rate, expenses and interest rate.

4. Investment risk
Investment risk comprises of market risk, credit risk, and liquidity risk.

Moreover, MTL defined investment risk and insurance risk as risks related to Asset and Liability Management (ALM).

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Risk Management Policy

    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.
2) Risk Identification: MTL has a process of identifying the risks that the company is exposed to.  The Risk Appetite Statement 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.
1. Strategic risk
Strategic Risk is the risk that arises from (1) the consequent of choosing to execute a particular strategy and (2) the failure associated with the strategy implementation. MTL classifies strategic risks into corporate planning risk and strategic implementation risk.

2. Operational risk
Operational Risk is the risk of loss resulting from failed, inadequate or inappropriate internal processes, people, systems and/or external events which impact to company operation or financial statement. This definition excludes strategic and reputational risk.

3. Insurance risk
Insurance risk is the risk from fluctuation of claim frequency, claim severity or time of claim occurrence that deviate from the pricing and reserving assumptions. Key assumptions include mortality rate, lapse rate, expenses and interest rate.

4. Investment risk
Investment risk comprises of market risk, credit risk, and liquidity risk.
Moreover, MTL defined investment risk and insurance risk as risks related to Asset and Liability Management (ALM).

Corporate Governance

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