TSC Annual Report 2024 final - Flipbook - Page 57
Notes - Financial statements
Risk Committee
The Risk Committee is a subgroup of the Board of Directors.
It is responsible for reviewing and monitoring the effectiveness
of TSC’s risk management system. It also serves as a link
between the Board and risk management function, helping the
Board ful昀椀l its responsibilities regarding risk management.
Finance & Audit Committee
The Finance & Audit Committee is a subgroup of the Board
of Directors. It is responsible for monitoring TSC’s 昀椀nancial
operations and internal controls.
The committee reviews TSC’s financial reporting to ensure
that it is correct and compliant with the applicable rules
and regulations. It also monitors effectiveness of the internal
controls and internal audit, along with serving as a link
between the Board of Directors and the audit. It ensures
compliance and makes decisions on investment allocations
based on TSC’s risk directive.
Managing Director
Corporate
Legal
Human
Resources
Underwriting
Claims
IT & Digital
Transformation
Finance
Team
Sweden
Team
Norway
Team United
Kingdom
Team
Greece
Team
Hong Kong
Team
Singapore
Organisation overview
Operational functions
The operational functions or geographic themes within TSC
comprise the 昀椀rst line of defence and they are responsible for
identifying, managing and reporting risks in the daily operations.
Managers for the operational functions ensure that employees
follow TSC’s rules and guidelines.
The Managing Director is appointed by the Board and is
responsible for the daily management activities of the Club.
They are also responsible for implementing corrective
measures when necessary. Managers must also inform the
Risk, Actuarial and Compliance functions if they become aware
of circumstances that could impact their areas of responsibility.
Organisation and internal control
Risk function
The Club’s organisation consists of the managing director,
central functions and six geographic teams. The geographic
teams are mostly independent in terms of daily operations.
However, many of the organisation’s functions have been
centralized, as illustrated in the 昀椀gure, below.
The risk function is a central part of the second line of defence
and it is responsible for implementing and monitoring an
effective risk management system.
Managing Director
The work and responsibilities for each component of the
organisational structure must be well-defined, allocated
and coordinated. Relevant processes are described and
documented in the Club’s management system.
The Swedish Club (TSC) organises itself according to the
model, with three lines of defence aimed at ensuring that
risks are managed effectively and that there is robust
internal control. The 昀椀rst line of defence is comprised of the
operational activities, and this is where daily controls and risk
management occurs.
The second line of defence consists of the central functions
for Risk management, the Actuarial function and the
Compliance function. They are independent of the operational
activities and responsible for supporting and monitoring
the work. The third line of defence is comprised of the
Internal audit. It is completely independent and responsible for
evaluating the effectiveness of the entire governance system.
Internal control
Internal control at TSC is designed to ensure that there
is effective operational management, reliable financial
reporting, compliance with laws and regulations, as well as
systematic management of risks in order to safeguard the
organisation’s resources and goals.
The flows of information, along with roles and responsibilities,
are clearly de昀椀ned to facilitate timely, correct reporting between
the various levels of the organisation. Processes and routines
are continuously evaluated to ensure effectiveness and
regulatory compliance.
Examples of tasks that the Risk function works with are:
• Identifying and assessing risks
• Monitoring and reporting risks
• Providing support to the Board of Directors by supplying
them with regular reports on risk control and risk tolerance,
along with participating in relevant committees
• Providing advice on risk management
• Coordinating TSC’s ORSA process
• Ensuring regulatory compliance associated with
risk management
The Risk function conducts its activities independent of the
operational side of the business and it regularly reports to
senior management, the Board and relevant committees.
Actuarial function
The Actuarial function is responsible for coordinating
calculation of the technical provisions, checking the
calculations for the ORSA report, maintaining the Internal
Capital Model (ICM), and performing controls on the
relevant risks using advanced methods like scenario tests
and stochastic models. It also reviews the suitability of
the underwriting policy and reinsurance programme.
Compliance function
The compliance function is responsible for identifying and
monitoring regulatory compliance associated with the Club’s
insurance activities that are subject to a permit in accordance
with the applicable rules and regulations. Activities
associated with compliance include:
• Identi昀椀cation and analysis of relevant rules, regulations
and requirements that impact the Club’s operations.
• Providing information and advice on the applicable rules,
regulations and requirements.
The Swedish Club | Annual Report 2024
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