Governance, Compliance and Integrated Risk Management
Governance is the body of rules and principles to which the Company, its directors and its officers must adhere in the performance of their functions to ensure the organization's sound management and financial profitability. It defines the role and responsibilities of the Boards of Directors, directors and senior management, as well as the competencies needed to be a director.
Humania Assurance applies governance rules that recognize the essential contribution of the Board of Directors to the organization's success. Those rules define, among other things, the mandate and operational standards of its Board of Directors, the responsibilities of its directors and the mandates of statutory committees, and ensure that officers meet the highest ethical standards. They divide tasks among the Board of Directors, the Board Chairman and the President and Chief Executive Officer, and they establish a variety of mechanisms to ensure integrated risk management, adequate internal controls and independent supervision of certain activities.
As an insurance company, Humania Assurance operates in a constantly evolving legislative, regulatory and normative environment. Management places the utmost importance on legislative and regulatory compliance and on prudent, sound management practices.
Humania Assurance has developed a compliance management policy towards establishing a management framework that includes measures to oversee and mitigate the risk of non-compliance with the regulatory environment. It enables members of the Board of Directors to obtain reasonable assurance that Humania Assurance's operations are carried out in accordance with the regulatory environment to which the Company is subject.
The compliance management policy serves to:
- outline the principles and components of the compliance management framework;
- define the roles and responsibilities in the area of compliance;
- meet the requirements established by regulatory authorities while adapting them to the reality of Humania Assurance;
- build a common culture and shared vision of compliance.
Integrated Risk Management Policy
Humania Assurance operates in an environment where risk management is essential and intrinsic to the conduct of business. Risk management is not a new concept for Humania Assurance; however, the existence of formal, integrated practices enables it to manage its risks in a uniform, progressive and dynamic approach.
Integrated risk management at Humania Assurance serves to:
- identify, assess, manage and monitor, uniformly and consistently year-to-year, the risks that may hinder achievement of the Company's strategic and operational objectives;
- provide the necessary feedback to promote collaboration and horizontal risk management and facilitate the sharing of information on risk across the entire organization;
- create a risk management culture that uniformly and explicitly facilitates resource allocation and decision-making.
The integrated risk management policy provides a management framework that includes risk identification, assessment, oversight and mitigation measures, within a perspective of good governance.