Notes to the Financial Statements
to management forums that are specifically structured to discuss risk related matters. Management information is produced that allows financial and non financial risk to be monitored. At a Board level, risk reporting is provided to the BRCC in addition to certain specific matters that are also reported to the Board. Reporting on the effectiveness of the internal control environment is reported to the Board Audit Committee ( BAC ). ClearView operates according to a three lines of risk responsibility model that seeks to clarify roles and accountabilities for managing risk across material risk types. The Risk Appetite Statement ( RAS ) considers and outlines ClearView’s material risks from a customer, capital, earnings, growth, employee, business partner, governance, technology, community and environment perspective. ClearView’s RAS clearly articulates the material risks and associated sub-categories to which ClearView is exposed and specifies the type and level of risk ClearView is willing to accept in pursuit of its strategic, business and financial objectives. The material financial and non-financial risk categories for ClearView include: • Financial • Strategic • Insurance • Conduct • Operational • Legal and Regulatory (Compliance) Some of the key material risk categories includes sub- categories are discussed in more detail below. Insurance management The risks under the life insurance contracts written by ClearView Life are exposed to various key variables. The table below provides an overview of the key insurance contract types and exposure variables.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. The critical judgements that the Directors have made in the process of applying the Group’s accounting policies and in the application of Australian Accounting Standards that have a significant effect on the financial report and estimates include: • Insurance and reinsurance contract assets and liabilities including actuarial methods and assumptions (section 5.2); • Recoverability of intangible assets and goodwill (section 4.2); • Deferred tax assets (section 2.7) i) Risk management ClearView is exposed to financial and non financial risks arising from its operations. These risks are managed through the Risk Management Framework ( RMF ) inclusive of the Risk Management Strategy ( RMS ) that is in place and which complies with the requirements of CPS 220. The RMF is subject to review to ensure that it continues to remain current and reflect changes in the businesses operating environment and regulatory and community expectations. The Board has overall responsibility for the establishment and oversight of the risk management strategy and framework. The Board Risk and Compliance Committee ( BRCC ) supports the Board by overseeing how risk is managed in accordance with the Group’s risk management policies and procedures. The BRCC also reviews the adequacy of the RMF. The Committee reports regularly to the Board of directors on its activities. At a management level, risk is governed through a delegation structure, in addition
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ClearView Annual Report 2024
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