Risk Management system objectives

The Risk Management system objectives include:

  • increasing the total value of the Group by focusing on returns as well as risks;
  • maintaining a suitable capital, liquidity and profitability level of the Group;
  • supporting efficient decision-making by providing thorough insight into risks and their effects or consequences;
  • ensuring the security and satisfaction of investors, employees, clients as well as the satisfaction of all stakeholders in the Group's operations.

The Risk Management system is made of three lines of defence with clearly defined responsibilities as described below.

The first of the three lines of defence in the system is spread over individual divisions, which are primarily responsible for active Risk Management. They are also responsible for the effective functioning of internal controls and the implementation of business activities within the set limits and in accordance with the strategic objectives.

The second line of defence consists of the Risk Management Committee, the Assets and Liabilities Committee (ALCO) (see chart) and the Risk Management Department. The two committees supervise the functioning of the integrated management system and the proper communication. Each committee includes at least one Management Board member, the relevant executive directors and the directors of departments directly accountable to the Management Board of Zavarovalnica Triglav.

The Risk Management Department draws up a risk management framework (methodologies used for risk identification, measurement and management, minimum requirements for the internal control system, development of assets and liabilities management models, setting investment policy limits and operational risk limits, verifying compliance with the Risk Management framework). The Director of the Risk Management Department, who is directly accountable to the Management Board, is also a member of the Risk Management Committee and of the ALCO. This and other parts of the organisational structure clearly reflect the Company's awareness on the importance of Risk Management.

The compliance function is another important element of the Risk Management system, which advises divisions and the Management Board on all relevant issues regarding compliance with the legislation in force, monitors the state of compliance of Triglav on an on-going basis, develops activities for the prevention of money laundering and the financing of terrorism and supervises their implementation.

The third line of defence is represented by the Internal Audit Department, which in accordance with legal requirements regularly tests the effectiveness and reliability of the internal control environment. Furthermore, it periodically evaluates the quality of the Risk Management system.

Risk Management chart


Risk-related decision-making competences and authorities are shown in the table below: 

Management Board


  • Defines the Risk Management strategy in line with the business strategy of Zavarovalnica Triglav;
  • Approves the Risk Management policy;
  • Approves individual components of the Risk Management system;
  • Approves the internal documents with reference to Risk Management.

Risk Management Committee

  • Gives preliminary approval to the Management Board’s decisions relating to individual components of the Risk Management system, including the target risk exposure;
  • Defines Risk Management standards;
  • Defines methodologies of risk measurement and management for all risk categories;
  • Defines operational risk exposure limits and monitors the operational risk exposure levels;
  • Monitors the implementation of IT security polices;
  • Monitors the implementation of the compliance system;
  • Monitors the outsourcing risk exposure levels.

Assets and Liabilities Committee (ALCO)

  • Gives preliminary approval to the Management Board’s decisions relating to assets and liabilities management;
  • Approves investment policies for individual long-term business funds and assets backing liabilities;
  • Gives preliminary approval to the Management Board’s decisions relating to bonus allocations
  • Monitors risk exposures arising from assets and liabilities management to the insureds;
  • Monitors changes in the external environment relating to assets and liabilities management (e.g. changes concerning measurement methods, the legislative environment, external reporting).

Risk Management Department

  • Develops the Risk Management system of Zavarovalnica Triglav, including the methods, processes, models and framework of the internal control system;
  • Regularly carries out risk analyses and reports on exposure levels to the Management Board;
  • Drafts the Management Board’s decisions on risk reduction;
  • Coordinates preparations for Solvency II;
  • Provides operational support to the Risk Management Committee and the ALCO
  • Promotes good practices in the Risk Management culture through workshops, seminars and the like.

Individual divisions

  • Actively manage risks in their business segments by adhering to the set limits and strategic guidelines;
  • Develop internal controls within the framework of the internal control system;
  • Cooperate with the Risk Management Department in risk analyses and/or model development.

The scope of Risk Management activities is defined in the global Risk Management strategy statement. Accordingly, Risk Management policies have been developed that define risk governance, Risk Management roles and responsibilities with respect to the stated risk appetite.

The risk exposure limits are:

  • general limits by portfolio
  • additional limits by risk type.

Our website uses cookies for better user experience

By continuing to browse our website you agree to our use of cookies which helps us provide you with a good user experience on our website. We use Google Analytics for our own analytical purposes and it installs cookies for this purpose (delete GA cookies). More about cookies.