Directors’ Report
Risk management Risk management in ClearView has priority with the Board, Executive Leadership Team and the business. The way in which risks are managed continues to evolve to meet the ongoing changes and challenges in economic conditions, the competitive landscape, stakeholder (including regulatory) expectations and the delivery of solid and sustainable financial performance. In FY24, our areas of focus were on enhancing information and cyber security, business resilience and progressing the implementation of requirements introduced in the new APRA Standard CPS 230 - Operational Risk Management. ClearView’s risk management framework supports the business with managing the risks to achieving our objectives within risk appetite. These risks include a combination of existing and emerging risks within our financial and non-financial risk exposures. ClearView regards the skills, experience and focus of our staff as vital assets in managing material risks across the organisation. The competence of staff is complemented by a structured Risk Management Framework ( RMF ) consisting of systems, processes and human capital to manage both financial and non-financial risks. The RMF supports the Board and management’s oversight of these risks. The RMF incorporates the requirements of APRA’s prudential standard on risk management (CPS 220 Risk Management) and is subject to an independent review every three years. The following diagram illustrates the key elements of the RMF.
Risk Governance
Risk Management Approach
• Risk Appetite Statement ( RAS ) • Risk Management Strategy ( RMS ) • Material Risk Categories (Strategic / Operational / Credit / Market and Investment / Liquidity / Insurance / Compliance)
• Policies and guidelines • Boards and board committees • Management committees • Reporting • Performance measurement • Training and awareness
• Capital ( ICAAP )
Risk Culture
Risk Management Accountability
Risk Management Process
• 1st line – own the risk
• Identification • Assessment • Management • Monitoring • Attestation / Assurance • Stress and scenario analysis
• 2nd line – advisory, challenge and oversight
• 3rd line – independent assurance
The RMF is described by Board-approved documents, including (but not limited to): • The Risk Appetite Statement ( RAS ) articulates the material risks that ClearView is exposed to and specifies the type and level of risk we are willing to accept in pursuit of strategic, business and financial objectives, giving consideration to the interests of our policyholders. • The Risk Management Strategy ( RMS ) describes ClearView’s strategy for managing current and emerging material risks, including an outline of risk management policies and processes and the risk governance structure.
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ClearView Annual Report 2024
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