1Risk Management Regulation

Regulations. 4 U رة ا*آت ااردة ; ه'& ا%$# 9آت ا وإ"دة ا و9آ ت ا- ا#ة وWء ا، وآ% ء ا، وWء إ"دة ا، ووآ% ء إ"دة ا أ  ارات ا? ; ه'& ا%$# 5KX ا5 ااردة ; ادة ا6 و  ا%$# اK'4 Hم ا 9آت ا او5 Risk management is defined1 as the process whereby the insurer's management takes action to assess and control the impact of past, present and potential future Y4+ Z4 >? إدارة ا ! ا 4?' ; إ>ره ا] إ=اءات + Z و\[ ^ات ا6`اث ا\ ، ا#\ة و ا ! اُ#! 1 Source: IAIS guidance paper on investment risk management, October 2004      '& % $ # "!     ا  ا اديSaudi Arabian Monetary Agency إدارة ا اInsurance Supervision Department events that could be detrimental to the insurer. These events can impact both the asset and liability sides of the insurer's balance sheet, and the insurer’s cash flow. ا  95- أن +bن cة . F و اb أن +^ّ ه'& ا6`اث "! ا6fل وا?Uم ; /ا5 ا] و $ ا; ت ا 4 Scope and Exemptions ا3$ق وا94!3ءات This Code applies to insurance and reinsurance companies, and insurance related service providers including insurance brokerages, insurance agencies, reinsurance brokerages, and reinsurance agencies. +Wg أ`bم ه'& ا%$# "! 9آت ا وإ"دة ا و9آت ا- ا#ة وWء ا، وآ% ء ا وWء إ"دة ا، ووآ% ء إ"دة ا Compliance Measures إ@اءات ا9Bام Companies must establish appropriate internal controls and procedures to ensure and monitor compliance with This Code, including the compliance of all contracted parties, in particular when there is clear evidence of a breach in the regulation. 432 "! ا*آت أن +cD إ=اءات اا ااJ! ا cن   اG/ام ا%$# و; ` +ه D أ>اف أJى، ; "!- اآ  ا/ام آ; ا6>اف ا%$ # و 6JI " و=د ?K وا\#  أ ` ا6>اف اة - Companies must maintain adequate records to demonstrate compliance with This Code, including but not limited to the risk strategy and the organizational structure implemented. iK#+ 432 أن ا*آت 3%ت %$ @^ت ا/ا- -'& ا%$# ، "! ) اjل G ا#U اا+3 إدارة ا?> وا-b) اH اWّg Non-Compliance 9"م ا Bام Non-compliance with the requirements set forth in This Code will be deemed a breach of the Law on Supervision of Cooperative Insurance Companies and its Implementing Regulations and licensing conditions and may subject companies to enforcement action. -!" 4 "م اG/ام W!ت اUص ; ه'& ا%$# ?K Hم ا 9آت ا ا و5 وG$#F اK'4 و*وط اU4n و4b أن 4ُّض ا*آ !  ت اH Structure of This Code CDهF* ه ا:8 The risk management requirements are outlined in Parts 2 and 3 of This Code: W!ت G$# إدارة ا?>  ; ا اj5 واjo  ه'& ا%$# a) Part 2 - General Requirements, which are principle-based. ا ب اj5  اW!ّت ا دئ b) Part 3 - Risk Management Standards, which stipulate the risk management requirements companies must adhere ( ا ب اjo >?إدارة ا +*ط "! ا*آت \ورة اG /ام W!ّت إدارة ا?>  أ=) ا=-