GENERAL PRINCIPLES FOR RISK MANAGEMENT
Ilmarinen bears a significant social responsibility in managing earnings-related pension insurances, a major component of Finnish social security. The company is also manages extensive assets. In terms of risk management, the most essential goal is to secure the rights of the insured, pensioners and policyholders in all situations.
The objective of Ilmarinen’s risk management is to prevent the realisation of risks threatening the company, minimise the damage caused by realised risks, ensure the continuity of operations, and minimise the amount of any financial losses. A further aim is to secure the company enough room for manoeuvre as far as a controlled increase in the risk level could be used to increase the company’s profitability. This is particularly important for investment operations.
Board of Directors reviews risk management plan
The key areas of the company’s risk management are systematically linked to the company’s basic mission as well as strategic and operative targets. The risk management system is documented in the risk management plan that encompasses all of the company’s operations and which is annually reviewed and approved by the Board of Directors.
The ‘Risk Management at Ilmarinen’ document below discusses in detail the overall principles and organisation of Ilmarinen’s risk management as well as the risk management in underwriting, investment operations and exceptional circumstances.
The purpose of the internal audit is to provide an independent, objective assurance and consulting service designed to add value and improve the organisation’s operations.
It helps Ilmarinen accomplish its objectives by bringing a systematic approach to evaluating and improving the effectiveness of risk management, control, management and governance processes.
The internal audit is part of Ilmarinen’s steering and control system, which is utilised by the company’s Board and President and CEO in implementing their duty of surveillance.