Risk Management Toolkit
Risk
Management
Toolkit
Contents
•
Section 1 – Introduction
3
•
Section 2 – Risk definition and language
7
•
Section 3 – Risk appetite
33
•
Section 4 – Risk governance, roles and responsibilities 51
•
Section 5 – Risk policy
65
•
Section 6 – Risk and control self assessment
93
•
Section 7 – Key risk indicators
113
•
Section 8 – Internal loss events
129
•
Section 9 – External loss data
143
•
Section 10 – Management information
147
•
Section 11 – Stress and scenario testing
153
•
Section 12 – Risk culture
169
Introduction
Section 1
1 Introduction
The risk management toolkit
Lloyd’s has developed a risk management toolkit to help to develop risk management practice across the Lloyd’s market. The toolkit provides a range of tools, techniques and templates, worked examples, and practical advice for key aspects of risk management. The toolkit supports the Lloyd’s risk management standards and guidance documents.
Toolkit background and development
Lloyd’s has worked closely with members of the market in developing the toolkit. In particular,
Lloyd’s would like to thank those members of the toolkit working party and the members of the
LMA Risk Management Committee for their valuable contributions. The participation of both groups in helping to scope and shape the toolkit, in directing the development and by providing valuable feedback at every stage has been hugely helpful. As well as the individuals, we would like to thank their organisations for allowing them to participate. We would also like to thank Deloitte for their help and assistance in putting the material together, and all those that have been involved within the Franchisor.
Aims of the toolkit
Risk management practice varies considerably across the Franchise, and so will the use of the toolkit. For example, the tools could be used in the following ways:
•
the tools can
Management
Toolkit
Contents
•
Section 1 – Introduction
3
•
Section 2 – Risk definition and language
7
•
Section 3 – Risk appetite
33
•
Section 4 – Risk governance, roles and responsibilities 51
•
Section 5 – Risk policy
65
•
Section 6 – Risk and control self assessment
93
•
Section 7 – Key risk indicators
113
•
Section 8 – Internal loss events
129
•
Section 9 – External loss data
143
•
Section 10 – Management information
147
•
Section 11 – Stress and scenario testing
153
•
Section 12 – Risk culture
169
Introduction
Section 1
1 Introduction
The risk management toolkit
Lloyd’s has developed a risk management toolkit to help to develop risk management practice across the Lloyd’s market. The toolkit provides a range of tools, techniques and templates, worked examples, and practical advice for key aspects of risk management. The toolkit supports the Lloyd’s risk management standards and guidance documents.
Toolkit background and development
Lloyd’s has worked closely with members of the market in developing the toolkit. In particular,
Lloyd’s would like to thank those members of the toolkit working party and the members of the
LMA Risk Management Committee for their valuable contributions. The participation of both groups in helping to scope and shape the toolkit, in directing the development and by providing valuable feedback at every stage has been hugely helpful. As well as the individuals, we would like to thank their organisations for allowing them to participate. We would also like to thank Deloitte for their help and assistance in putting the material together, and all those that have been involved within the Franchisor.
Aims of the toolkit
Risk management practice varies considerably across the Franchise, and so will the use of the toolkit. For example, the tools could be used in the following ways:
•
the tools can