Audit and risk management committee
This committee is composed of independent directors and must comprise at least three members, a majority of whom do not serve on another Board committee. Each Committee member must have appropriate financial literacy and at least one must have accounting or financial management expertise.
Claude Robitaille, Chair
The Audit and Risk Management Committee is responsible for overseeing the financial reporting process and ensuring that financial statements are reported in accordance with the International Financial Reporting Standards (IFRS). It must also ensure that a suitable internal control system is in place, monitor risk management processes and recommend the Company’s risk profile and corresponding action plan to the Board of Directors. It also supervises the audit process and the procedures implemented by the Company to ensure compliance with accounting and finance legislation and regulations.
With regard to financial information, the Committee primarily reviewed the independent auditor’s report for the fiscal year ended December 31, 2018. Moreover, the Committee received the Dynamic Capital Adequacy Testing (DCAT) report, as well as the appointed actuary’s technical provisions report.
It also recommended to the Board of Directors that the audited financial statements be approved, and adopted the proposed 2019 audit plan. The Committee also received statements from management concerning the Company’s compliance with statutory requirements and policies relating to investment management and IT security.
The Committee members also examined existing internal control procedures and reviewed the submitted reports, which dealt with the internal audit activities carried out by the finance team and the audits conducted by the Company’s external partners, such as reinsurers and specialized firms. In addition, the Committee members continued to work with management to monitor the progress and impact of certain changes to IFRS standards and to capital adequacy requirements for life and health insurance companies implemented in 2018.
In keeping with the mandate conferred on it by the Board, the Committee studied the process for preparing and monitoring the Company’s risk profile, including the related action plans, and recommended its adoption to the Board. It also examined the crisis simulation report prepared by the actuarial team, and proposed the target ratio and the level of risk appetite for the Company to the Board. Similarly, the Committee reviewed the actuarial assessment of the Company’s supplemental pension plan and offered its recommendations to the Board.
With regard to computer security, the Committee reviewed the audits and action plans implemented by the Company to ensure the security of its systems and the protection of its data.
Finally, it recommended to the Board of Directors that certain policies be updated and adopted and put the external auditor contract out for tender.
To fulfil its mandate, the Committee worked closely with management and held private meetings with the independent auditor and the appointed actuary.