• CAPI Division 2.3.B CAPI Division 2.3.B Strategy and risk document

    • CAPI 2.3.3 CAPI 2.3.3 What is a strategy and risk document?

      (1) A firm that is a QFC captive insurer must prepare, at the beginning of each financial year, a high level document (the strategy and risk document) that describes the key elements of a firm's risk management policy.
      (2) A firm's strategy and risk document must be appropriate to the nature, scale and complexity of the firm's business and must include—
      (a) the purpose of the firm as captive insurer; and
      (b) its risk appetite and risk management strategy (or revised strategy); and
      (c) a description of the risk assessment conducted by the firm and the results of that assessment; and
      (d) an explanation about how the risks identified by the risk assessment are to be reported, monitored and managed; and
      (e) the role and responsibilities of management in relation to risks; and
      (f) systems and controls for managing risks; and
      (g) the firm's forward budget; and
      (h) an outline of the approval and review processes for the document.
      Derived from QFCRA RM/2011-1 (as from 1st July 2011)

      • CAPI 2.3.3 Guidance

        Although a strategy and risk document would not normally contain the policies or procedures that underpin the firm's risk management policy, it may refer to them for illustrative purposes.

        Derived from QFCRA RM/2011-1 (as from 1st July 2011)

    • CAPI 2.3.4 Strategy and risk document—risk assessment

      A risk assessment for a firm must have regard to the nature, scale and complexity of the firm's business and must include assessments in relation to the following risks:

      (a) insurance and reinsurance risk;
      (b) investment and liquidity risk;
      (c) market risk;
      (d) credit risk;
      (e) operational risk.
      Derived from QFCRA RM/2011-1 (as from 1st July 2011)

    • CAPI 2.3.5 Strategy and risk document—approval by governing body

      (1) A firm must ensure that its strategy and risk document and any amendment to it are approved by its governing body.
      (2) The governing body of a firm must not approve the firm's strategy and risk document (or any amendment to it) unless it is satisfied that—
      (a) the document, including any amendment, describes the key elements of the firm's risk management policy; and
      (b) the risk management policy of the firm is appropriate; and
      (c) the risk management strategy set out in the document gives reasonable assurance that all material risks facing the firm, specially those mentioned in rule 2.3.4, are being prudently and soundly managed.
      (3) The governing body must approve the strategy and risk document and any amendment to it with sufficient promptness to enable the firm to comply with its obligation under rule 2.3.7 (Strategy and risk document—copy must be given to Regulatory Authority).
      Derived from QFCRA RM/2011-1 (as from 1st July 2011)

    • CAPI 2.3.6 Strategy and risk document—review by firm

      A firm must review, and amend if necessary, its strategy and risk document if there is a material change to its risk management policy.

      Derived from QFCRA RM/2011-1 (as from 1st July 2011)

    • CAPI 2.3.7 Strategy and risk document—copy must be given to Regulatory Authority

      (1) A firm must give the Regulatory Authority a copy of its strategy and risk document for a financial year within 2 months after the start of the financial year.
      (2) If a strategy and risk document of a firm is amended, the firm must give the Regulatory Authority a copy of the amendment, together with a copy of its strategy and risk document as amended, within 10 business days after the day the amendment is approved by the firm's governing body.

      Note Governing body, month and business day are defined in the glossary.
      Derived from QFCRA RM/2011-1 (as from 1st July 2011)

    • CAPI 2.3.8 Strategy and risk document—deviation

      A firm must not intentionally deviate in a material way from its strategy and risk document unless—

      (a) the deviation has been approved by the governing body; and
      (b) the Regulatory Authority has been notified in writing about the deviation.

      Note Writing is defined in the glossary.
      Derived from QFCRA RM/2011-1 (as from 1st July 2011)