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• Risk management system – The risk management
system includes the following key policies:
–– Enterprise Risk Management Framework
–– Risk Appetite Policies
–– Fit and Proper Policy
–– Remuneration Policy
–– Asset-Liability Management Policies
–– Investment Management Policies
–– Reinsurance and Other Risk Transfer Policy
–– Financial Risk Policy
–– Insurance Risk Policy
–– Strategic and Operational Risk Policy
–– Fraud and Corruption Policy and Response Plan
–– Own Risk and Solvency Assessment (ORSA) Policy
–– Data and Reporting Policy
–– IT Policy
• Internal control system.
The PPS Governance Framework provides for the prudent
management and oversight of PPS, as well as adequately
protecting the interests of PPS’ members. The framework
is appropriate, given the nature, scale and complexity of
the PPS Group and its associated risks and is based on
key principles as set out in this report.
TRANSPARENT ORGANISATIONAL
STRUCTURE
The governance framework provides an adequate,
transparent organisational structure with a clear allocation
and appropriate segregation of responsibilities. The
roles and responsibilities of persons accountable for the
management and oversight of PPS are clearly defined.
The PPS Group is governed by a unitary board of trustees,
assisted by boards of directors, board committees and
management committees.
An appropriate system of delegation is in place, in terms
of which the direction of the operations of the PPS Group
has been delegated to the PPS Insurance Board. The PPS
Insurance Board has delegated some of the activities
and tasks associated with its role and responsibilities to
board committees, the Group Executive Committee, senior
management and other employees of the PPS Group.
FIT AND PROPER
The PPS Group Boards are ultimately responsible for
ensuring that PPS complies with the fitness and propriety
principles and requirements.
The Prudential Standard as outlined in GOI 4 Fitness and
Propriety of Significant Owners and Key Persons of Insurers
states that the following persons must, at all times, meet
Fit and Proper requirements:
• Trustees and directors
• Key Persons, being directors and trustees, the Group
Chief Executive (Chief Executive) and persons reporting
directly to the Chief Executive with decision-making
powers
• Heads of Control Functions
• Auditors
• Principal Officers
• Significant owners of insurance companies in the
PPS Group
The Fit and Proper requirements are defined in the
Prudential Standard, as well as the PPS Group Fit and
Proper Policy, as requirements which are based on
the principles of honesty and integrity, competence –
including experience, qualifications and knowledge, as well
as financial standing for Significant Owners. Fit and Proper
checks for the aforementioned persons are conducted on
an annual basis.
RISK MANAGEMENT SYSTEM
The risk management system comprises the totality
of strategies, policies and procedures for identifying,
measuring, monitoring, managing and reporting of all
reasonably foreseeable current and emerging material
risks, and is part of the day-to-day business activities
conducted at the PPS Group. The system takes into
account the probability, potential impact, velocity and
duration of risks and is adapted as the business and
the external environment change. The system supports
the boards of directors and trustees in meeting their
responsibilities relating to the furtherance of the safe and
sound operation of the PPS Group and the protection of
its members. The objectives of the PPS Group are aligned
with its environmental policies. The risk management
system takes into account the alignment of sustaining and
growing the business while preserving the environment.
The risk management system comprises the following
components:
• A clearly defined and documented risk management
strategy, which considers the overall business strategy
and business activities.
• Documented procedures which clearly define the
decision-making processes within the framework of
the risk management system.
• An adequate written overall risk management policy
and component policies, consistent with the risk
management strategy.
• Appropriate processes, procedures, and tools for
identifying, measuring, monitoring, managing, and