Circular 70/2022/TT-BTC risk management, internal control, internal audit of insurance enterprises

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Circular No. 70/2022/TT-BTC dated November 16, 2022 of the Ministry of Finance prescribing risk management, internal control, internal audit of insurance enterprises, reinsurance enterprises, branches of foreign non-life insurance enterprises and branches of foreign reinsurance enterprises
Issuing body: Ministry of FinanceEffective date:
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Official number:70/2022/TT-BTCSigner:Cao Anh Tuan
Type:CircularExpiry date:Updating
Issuing date:16/11/2022Effect status:
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THE MINISTRY OF FINANCE
_______

No. 70/2022/TT-BTC

THE SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness
_______________________

Hanoi, November 16, 2022

CIRCULAR

Prescribing risk management, internal control, internal audit of insurance enterprises, reinsurance enterprises, branches of foreign non-life insurance enterprises and branches of foreign reinsurance enterprises

_______________

 

Pursuant to the Law on Insurance Business dated June 16, 2022;

Pursuant to the Law on Enterprises dated June 17, 2020;

Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

The Minister of Finance hereby promulgates the Circular prescribing risk management, internal control, internal audit of insurance enterprises, reinsurance enterprises, branches of foreign non-life insurance enterprises and branches of foreign reinsurance enterprises.

 

Chapter I

GENERAL PROVISIONS

 

Article 1. Scope of regulation

This Circular guides Articles 84, 85 and Clauses 1, 2 Article 86 of the Law on insurance business.

Article 2. Subjects of application

1. Life insurance enterprises, non-life insurance enterprises and health insurance enterprises (hereinafter referred to as insurance enterprises), reinsurance enterprises.

2. Branches of foreign non-life insurance enterprises and branches of foreign reinsurance enterprises (hereinafter referred to as foreign branches).

3. Organizations and individuals involved in risk management, internal control, and internal audit of insurance enterprises, reinsurance enterprises, and foreign branches.

Article 3. Interpretation of terms

In this Circular, the terms below are construed as follows:

1. Parent company of foreign branches means foreign non-life insurance enterprise or foreign reinsurance enterprise with Vietnam-based branches.

2. Risk means the ability to loss (financial loss, non-financial loss) that reduces income and equity capital and leads to a decrease in capital adequacy ratio or limits the ability to achieve business objectives of the insurance enterprises, reinsurance enterprises, and foreign branches.

3. Risk appetite means the ability of the insurance enterprises, reinsurance enterprises, and foreign branches to accept types of risks and the level of each type of risk in accordance with the business strategy and financial capacity of the enterprise and foreign branch.

4. Risk limit means the limit of each type of risk that individual or division of insurance enterprises, reinsurance enterprises, foreign branches is permitted to do at each time, each business process.

5. Material risks include insurance, market, operational, counterparty risks, and other risks assessed by insurance enterprises, reinsurance enterprises, and foreign branches that have a material impact on the financial safety and operational efficiency of insurance enterprises, reinsurance enterprises, and foreign branches.

6. Insurance risks mean risks arising due to the fluctuation of technical factors involved in the calculation of premiums, and operational provisions, including:

a) Risks related to the calculation of premiums: The establishment of inappropriate calculation of premiums assumptions results in the calculated premium needing more to cover the insurance benefits committed during the policy term and the operating expenses of the insurance enterprises, reinsurance enterprises, and foreign branches.  The calculation of premiums assumptions include:  Mortality risk ratio, longevity risk ratio, compensation ratio, expense ratio, investment interest, contract cancellation rate, and other assumptions used in the premium model;

b) Risks related to non-life insurance compensation provisioning: The provision for compensation is not enough to pay compensation for the liability portion of the non-life insurance enterprise or branch of the foreign non-life insurance enterprise;

c) Catastrophic risks: There is a risk when the actual compensation rate is significant, exceeding the assessed price due to pandemics and disasters.

7. Market risks are risks arising from the investment market about investment or business activities of an insurance enterprise, a reinsurance enterprise or a Vietnam-based foreign branch, including:

a) Risks related to adverse fluctuations in interest rates on the market for the value of valuable papers, interest-bearing financial instruments, derivatives, investment assets of insurance enterprises, reinsurance enterprises, and foreign branches;

b) Risks related to adverse fluctuations in exchange rates on the market for activities of receiving, ceding reinsurance, and foreign investment;

c) Risks related to adverse fluctuations of stock prices in the market for the value of shares, the value of derivative securities of insurance enterprises, reinsurance enterprises, and foreign branches;

d) Disproportionate risk in terms of investment assets and liability commitments in insurance contracts of insurance enterprises, reinsurance enterprises, and foreign branches.

8. Operational risks mean risks arising from the establishment and implementation of operational processes of insurance enterprises, reinsurance enterprises, and foreign branches, including:

a) Risks related to inadequate establishment and non-compliance with internal regulations and business processes of insurance enterprises, reinsurance enterprises and foreign branches;

b) Legal risk;

c) Risks related to the appraisal establishment of inadequate and inappropriate due diligence activities, increasing the proportion of high-risk insured subjects;

d) Risks related to designing insurance benefits that are not market-appropriate;

dd) Risks related to employee and workplace safety policies;

e) Risks related to the quality of outsourced activities not meeting the requirements, the outsourced partner not performing the obligations under the outsourcing contract;

g) Risks related to information technology systems, personal data security and network security;

h) Risks related to business interruption;

i) Risk of fraud;

k) Other risks related to the operation of insurance enterprises, reinsurance enterprises and foreign branches.

9. Counterparty risk means the risk related to the counterparty's failure to fulfill payment commitments for investment activities and reinsurance activities of insurance enterprises, reinsurance enterprises, and foreign branches.

10. Liquidity risk means the risk that insurance enterprises, reinsurance enterprises, or foreign branches do not have enough money to meet their capabilities to pay due debts.

11. Risk management means identifying, measuring, monitoring, and controlling risks in the operation of insurance enterprises, reinsurance enterprises, and foreign branches.

12. Risk management culture means the cultural value of insurance enterprises, reinsurance enterprises and foreign branches, demonstrating the unified awareness of the importance of risk management activities of the Board of Directors/Members’ Council, General Director (Director) and individuals, divisions in insurance enterprises, reinsurance enterprises, foreign branches.

 

Chapter II

SPECIFIC PROVISIONS

Section 1

RISK MANAGEMENT

 

Article 4. Risk management organization

1. Insurance enterprises, reinsurance enterprises, and foreign branches must organize risk management with 03 independent lines of protection as follows:

a) First line: Professional divisions are those that directly identify, receive, evaluate, control, report and monitor risks arising in business activities;

b) Second line: The risk management division, compliance control division and other divisions have the function of controlling risks for the operation of the first line;

c) Third line: Internal audit division.

2. Depending on the scale, conditions, and complexity of business activities, insurance enterprises, reinsurance enterprises, and foreign branches shall establish the organizational structure of the second line of protection, and ensure the full performance of the following tasks:

a) Advising the General Director (Director) to issue internal regulations on risk management;

b) Coordinating with professional divisions in the first line of protection to identify and monitor the arising material risks;

c) Formulating and using risk assessment and measurement models to warn and identify risks and ability to violate risk limits, propose measures to control, prevent and minimize risks that arise (if any);

d) Making scenarios to test the endurance of insurance enterprises, reinsurance enterprises and foreign branches against risks;

dd) Reporting on quarter, annual, and irregularly to the General Director (Director) on the risk management of insurance enterprises, reinsurance enterprises, and foreign branches; promptly report to the Board of Directors/Members’ Council of the insurance enterprise, reinsurance enterprise, the parent company of the foreign branch in case of detecting risks that may seriously affect safety financial and operational efficiency. The quarterly report must be sent no later than 30 days from the end of quarter; the annual report must be sent no later than 90 days from year end.

Article 5. Policy and internal regulation on risk management

Insurance enterprises, reinsurance enterprises, and foreign branches must formulate risk management policies and internal regulations on risk management as follows:

1. The risk management policy of an insurance enterprise, a reinsurance enterprise, or a foreign branch must comply with Point c Clause 2 Article 86 of the Law on Insurance Business.

2. The internal regulations on risk management include the following contents:

a) Functions, tasks, decentralization mechanism, decision-making authority, and responsibility of individuals and divisions in risk management activities of insurance enterprises, reinsurance enterprises, and foreign branches;

b) The process of identifying, measuring, monitoring, and supervising risks related to material risks; communication reports, feedback on risk changes and risk treatment;

c) Specific risk limits for each type of material risk and related risks and the correlation between those risks. Risk limits must ensure compliance with risk appetite and internal regulations on risk management; be re-evaluated periodically at least once a year and irregularly when significant changes are affecting the risks in the operation of insurance enterprises, reinsurance enterprises, foreign branches;

d) Measures to control risks arising from business activities and control individuals and divisions involved in such activities.

dd) Stress testing must satisfy the regulations in Article 7 of this Circular.

e) Contingency plan for emergencies to ensure business continuity of insurance enterprises, reinsurance enterprises, and foreign branches. This plan must be approved by the Board of Directors/Members’ Council of the insurance enterprise, reinsurance enterprise, or the parent company of the foreign branch;

g) Internal reporting mechanism on risk management.

Article 6. Risk identification, measurement, monitoring and control

Insurance enterprises, reinsurance enterprises, and foreign branches must identify, measure, monitor, and control risks in a timely and accurate manner under the following provisions:

1. Identify the material risks that insurance enterprises, reinsurance enterprises, and foreign branches can get in the business operation process.

2. Measuring the level of risk based on determining the impact of that risk on the operation, capital, and solvency of the insurance enterprise, reinsurance enterprise, and foreign branch. Risk measurement shall be performed by methods and models.  Those methods and models must be periodically inspected and assessed on their accuracy and appropriateness as specified by insurance enterprise’s/reinsurance enterprise’s/ foreign branch’s internal regulation.  The data used in risk measurement methods and models must have reliability and inspectability.

3. Monitoring the risk status and timely assessment; early warning of the possibility of violating the risk limits; restricting risks to ensure operational safety; making internal reports on risk monitoring and sending them to relevant individuals and divisions.

4. Controlling the implementation of business processes according to the corresponding risk limits; stress testing as prescribed in Article 7 of this Circular, having measures to prevent, minimize and promptly handle risks to ensure compliance with risk limits.

Article 7. Stress testing

1. Annually, insurance enterprises, reinsurance enterprises, or foreign branches must perform stress tests on capital and solvency as specified in Clause 2 of this Article.

2. Stress testing shall be performed as follow:

a) Making at least 02 scenarios:  01 business as a usual scenario; 01 scenarios with adverse events in insurance risk ratio, investment activities, operating costs, and other factors as assessed by insurance enterprises, reinsurance enterprises, and foreign branches.  The chosen scenarios must be made for at least 05 following fiscal years and formulated based on statistical analysis and actual operation of insurance enterprises, reinsurance enterprises, and foreign branches, forecasting macroeconomic developments;

b) Calculating the impact of assumptions on capital targets, solvency margins, and financial safety of insurance enterprises, reinsurance enterprises, and foreign branches in each scenario (including quantitative analysis and qualitative analysis).

3. Based on the stress test results, the insurance enterprise, reinsurance enterprise, and a foreign branch shall determine measures to maintain their business operation when there are adverse events (if any).

Article 8. Risk management report

1. The risk management report must include the following contents:

a) Conducting assessment of the level of adequacy of risk management, determine the financial resources required to manage business activities within the risk tolerance and business plans of insurance enterprises, reinsurance enterprises, or foreign branches;

b) Conducting a specific assessment of each type of material risk of insurance enterprises, reinsurance enterprises, and foreign branches and risk changes in operations;

c) Management measures of each type of material risk of insurance enterprises, reinsurance enterprises, or foreign branches;

d) Result of the stress test and analysis of the ability to continue operating in adverse situations for business operations.

2. Annually, insurance enterprises, reinsurance enterprises, and foreign branches shall make risk management reports and send them to the Ministry of Finance directly, post, or online under the guidance of the Ministry of Finance no later than 90 days from the end of that fiscal year.  Risk management report shall be made according to the form in the Appendix of this Circular.

Article 9. Management information system

1. Insurance enterprises, reinsurance enterprises, and foreign branches must establish a management information system to provide information and internal report to the Board of Directors/Members’ Council of the insurance enterprises, reinsurance enterprises, the parent company of the foreign branches, the General Director (Director) and related individuals, divisions to perform their functions and tasks and ensure compliance with the provisions of this Circular.

2. The management information system shall include:

a) Internal reports, meeting documents, resolution of the Board of Directors/Members’ Council of the insurance enterprise, reinsurance enterprise or decision of the parent company of the foreign branch, decision of the General Director, and other management information as prescribed by insurance enterprises, reinsurance enterprises, foreign branches.  Internal reports shall include the following reports:  risk management report; internal audit report; report’s internal audit division;

b) The organizational and management structure, as well as operation of the management information system, which specifies the responsibilities of related individuals and divisions for using the management information system;

c) Information collection, processing, archive, and provision; making, sending, receiving, and processing reports;

d) Information technology infrastructure that meets the requirements at Points c and d, Clause 3 of this Article.

3. The management information system must ensure:

a) Provide fulfilling, accurate, timely information and data that meet requirements of management risk, internal control, and internal audit of insurance enterprises, reinsurance enterprises, and foreign branches;

b) Update on compliance with laws and internal regulations of insurance enterprises, reinsurance enterprises, and foreign branches;

c) Confidentiality, ensuring the safety of information and data, and having backup information systems to ensure the safe, effective, and uninterrupted storage and use of information;

d) To be reviewed, re-evaluated, upgraded, and updated regularly and promptly to meet the needs of management information, scale, structure, and complexity in business activities of the insurance enterprise, reinsurance enterprise, and foreign branch.

Article 10. Risk management culture

1. Insurance enterprises, reinsurance enterprises, and foreign branches shall formulate the risk management culture through the issuance and implementation of professional ethics standards, internal regulations on risk management, and reward/disciplinary schemes.

2. The set of professional ethics standards must comply with the following principles:

a) Employees honestly perform assigned tasks and authority for the benefit of insurance enterprises, reinsurance enterprises, and foreign branches; not take advantage of the position and information of an insurance enterprise, reinsurance enterprise, or foreign branch for personal gain, harming the interests of the insurance enterprise, reinsurance enterprise or foreign branch;

b) Individuals and divisions shall be responsible for timely reporting to competent authorities when detecting violations specified at Point a of this Clause and violations of laws and internal regulations of insurance enterprises, reinsurance enterprises, and foreign branches.

3. Internal regulations on risk management must comply with Clause 2 Article 5 of this Circular.

4. Reward/disciplinary schemes must ensure accuracy, publicity, transparency, fairness, and timeliness. The performance of reward/disciplinary must be evaluated according to the assigned functions and tasks of each division and individual of the insurance enterprise, reinsurance enterprise, or foreign branch.

 

Section 2

INTERNAL CONTROL

 

Article 11. Requirements for business processes

1. To ensure the implementation of internal control activities, insurance enterprises, reinsurance enterprises, and foreign branches must formulate professional processes. Business processes include the processes following: Insurance pricing and product development process; exploitation and appraisal process; insurance compensation and payment; reinsurance and internal control process.

2. Business processes must ensure apparent decentralization and approval authority, consistent with functions and tasks of individuals and divisions; approval authority shall be determined based on the transaction size, risk limit, and other limits according to internal regulations of the insurance enterprise, reinsurance enterprise, and foreign branch.

Article 12. Internal control activities

Internal control activities shall ensure the following principles:

1. Internal control applies to all activities, business processes, and divisions of the insurance enterprise, reinsurance enterprise, and foreign branch.

2. The compliance control division must be independent of the business divisions.

3. An employee of an insurance enterprise, a reinsurance enterprise, or a foreign branch does not hold positions and duties simultaneously with conflicting or overlapping purposes and interests.

4. Employees are not allowed to use the information of insurance enterprises, reinsurance enterprises, or foreign branches for personal purposes; they are not allowed to conceal violations of laws and internal regulations of insurance enterprises, reinsurance enterprises, or foreign branches.

5. There is cross-checking and monitoring in the implementation of business processes.

6. The financial information system serving internal control activities must be honest, reasonable, complete, accurate, and timely.

Article 13. Task of the compliance control division

The task of the compliance control division include:

1. To advise the General Director (Director) or competent authority to issue the internal control process.

2. To inspect and evaluate annually and irregularly the compliance with the provisions of law, regulations, internal processes, and professional ethical standards of individuals and professional divisions.

3. To support relevant divisions in building and reviewing internal regulations to ensure compliance with the law; make recommendations and complete internal processes and regulations.

4. To make quarterly, annual, and irregular reports for the General Director (Director) on the compliance with the provisions of law, regulations, internal processes, and professional ethical standards of individuals, and professional divisions, propose amendments and supplements to business processes (if necessary). The quarterly report must be sent no later than 30 days from the end of quarter; the annual report must be sent no later than 90 days from year end.

5. Timely report to the Board of Directors/Members’ Council of the insurance enterprise, reinsurance enterprise, parent company of the foreign branch in case of detecting violations in compliance with the law provisions of the insurance enterprise, reinsurance enterprise, and parent company of the foreign branch.

 

Section 3

INTERNAL AUDIT

 

Article 14. Task of the internal audit

The task of the internal audit include:

1. Auditing compliance with laws, processes, and internal regulations of insurance enterprises, reinsurance enterprises, and foreign branches.

2. Auditing safety and efficiency in the management and use of capital, assets, and resources of insurance enterprises, reinsurance enterprises, and foreign branches.

3. Auditing the accuracy, truthfulness, and effectiveness of controlling the financial information process and making the financial report.

4. Auditing the full, accurate, and safe information technology system and professional software.

5. Auditing other contents at the request of the Board of Directors/Members’ Council of the insurance enterprise, reinsurance enterprise, and the parent company of the foreign branch.

Article 15. Principles of the internal audit

1. Independence:

a) The organization and operation of the internal audit division must be independent of divisions of the first and second line of protection;

b) Internal audit performers of units may not concurrently perform jobs subject to the first and second line of protection;

c) Internal audit shall not be subject to any intervention in determining the audit's scope and content while the assessment and reporting audit results are performed.

2. Impartiality:

a) Internal audit performers shall ensure impartiality, honesty, and fairness, with no prejudice;

b) Auditing notes in internal audit reports shall be prudently analyzed and based on collected data and information;

c) Internal audit performers may not audit internal regulations and policies, procedures, and processes of which they are in prime charge of the formulation;

d) Internal audit performers may not participate in auditing operations and divisions that they are in charge of or manage within 02 years from the date of issuance of decisions relieving them from conducting such operations or managing such divisions;

dd) Internal audit performers must promptly report to the Head of the internal audit division on issues that may affect their impartiality when performing internal audit activities.  In case it is discovered that the internal audit performer may not ensure the principle of impartiality in internal audit activities, the Head of the internal audit division must report to the Board of Directors/Members’ Council of insurance enterprises, reinsurance enterprises, parent companies of foreign branches for appropriate solutions;

e) The task results of the Head of the internal audit division must be regularly checked, reviewed, and evaluated by the Board of Directors/Members’ Council of the insurance enterprise, reinsurance enterprise, or the parent company of the foreign branch.

3. Internal audit performers must comply with the law and responsibility before the law for internal audit activities within the scope of their assigned tasks.

Article 16. Internal audit regulation and process

1. Insurance enterprises, reinsurance enterprises, and foreign branches must promulgate internal audit regulations and processes.

2. The internal audit regulation must include the following contents:

a) Objectives and scope of operation, position, tasks, powers, and responsibilities of the internal audit division in the insurance enterprise, reinsurance enterprise, and foreign branch and its relationship with other divisions;

b) Basic principles, professional qualifications, assurance of internal audit quality, and other related.

3. The internal audit process guides in detail the following contents:

a) Methods of assessing and classifying risk levels (low, medium, high) as a basis for formulating the internal audit plan;

b) Methods of making annual internal audit plans, ways of performing audit work, making and sending audit reports, monitoring the implementation of post-audit recommendations;

c) Method of archive dossiers and documents of internal audit.

Article 17. Internal audit plans

1. Internal audit divisions shall formulate and perform annual internal audit plans, including the scope of the audit, auditee, audit objectives and period, and allocation of resources.

2. High-risk executive and professional operations/divisions, as assessed by insurance enterprises, reinsurance enterprises, and foreign branches, must be included in the annual audit plan.

3. When making internal audit plans, internal audit divisions must ensure a sufficient time volume for performing unscheduled audits upon request.

Article 18. Powers and responsibilities of internal audit divisions

1. In the process of performing its tasks, the internal audit division has the following rights:

a) To be provided with sufficient and prompt information, documents, and dossiers necessary for such internal audit activities;

b) To access and consider all professional processes and assets when performing internal audits;

c) To contact and interview all employees of the insurance enterprise, reinsurance enterprise, and foreign branch about matters related to audited contents;

d) To receive meetings’ documents and minutes of the Board of Directors/Members’ Council of insurance enterprises, reinsurance enterprises, and foreign branches related to internal audit work.

2. The internal audit division has the following responsibilities:

a) To keep confidential documents and information under current regulations and internal audit charters/regulations of insurance enterprises, reinsurance enterprises, and foreign branches;

b) When detecting a serious violation or error or seeing a high risk that may adversely impact the operation of insurance enterprises, reinsurance enterprises, and foreign branches, the internal audit division shall promptly report to the Board of Directors/Members’ Council of insurance enterprises, reinsurance enterprises and foreign branches, the parent company of the foreign branches, the General Director (Director);

c) An internal audit report shall be promptly made, completed, and sent to the Board of Directors/Members’ Council of insurance enterprises, reinsurance enterprises and foreign branches, the parent company of the foreign branches, the General Director (Director), and audited division after the end of each audit;

d) To supervise, evaluate and monitor error correction and remediation acts regarding matters noted by themselves and on which they have made recommendations;

dd) If problems stated in the audit report are not promptly addressed and solved, the internal audit division shall notify such to the Board of Directors/Members’ Council of insurance enterprises, reinsurance enterprises, and foreign branches, the parent company of the foreign branches;

e) To archive internal audit dossiers and documents in the form of documents for competent individuals and organizations to exploit.

Article 19. Responsibilities of audited divisions

1. To provide necessary resources and sufficient and prompt information, documents, and records for such internal audit activities.

2. To promptly notify internal audit divisions of violations and risks that may adversely impact the operation of insurance enterprises, reinsurance enterprises, and foreign branches.

3. To timely implement the recommendations in the internal audit report and direction of the Board of Directors/Members’ Council of the insurance enterprise, reinsurance enterprise, parent company of foreign branch, the General Director (Director) (if any).

Article 20. Internal audit report

1. The internal audit division must submit the internal audit report to the Board of Directors/Members’ Council of the insurance enterprise, reinsurance enterprise, and parent company of the foreign branch within 90 days from the end of each audit.

2. An audit report must clearly state the following:

a) Audited contents, audit scope;

b) Evaluations and conclusions on the audited contents and grounds for making such evaluations and conclusions;

c) Problems, violations, and explanations of audit subjects;

d) Proposed measures to correct errors and handle violations; measures to improve professional processes; completion of risk management policies and organizational structure of the insurance enterprise, reinsurance enterprise, and foreign branch (if any).

 

Section 4

RESPONSIBILITIES OF THE BOARDS OF DIRECTORS/MEMBERS’ COUNCILS, THE PARENT COMPANY OF THE FOREIGN BRANCH AND THE GENERAL DIRECTOR (DIRECTOR)

 

Article 21. Responsibilities of the Boards of Directors/Members' Councils, the parent company of the foreign branch

The Boards of Directors/Members' Councils, the parent company of the foreign branch, shall be responsible for:

1. Deciding on the insurance enterprise, reinsurance enterprise, and foreign branch's organizational structure to perform risk management, internal control, and internal audit.

2. Promulgating risk management policies for each period; principles for implementing internal control; internal audit process of insurance enterprises, reinsurance enterprises, and foreign branches.

3. Approving the internal regulations on risk management policies before promulgating by the General Director (Director); approving and adjusting the annual internal audit plan.

4. Directing and supervising the General Director (Director) in:

a) Correction and remediation of the problems and limitations on the organization of risk management and implement the requirements and recommendations to the independent audit organization, internal audit, and competent authorities;

b) Handling violations, violations of professional ethics, and internal regulations of relevant individuals and divisions.

5. The Boards of Directors/Members' Councils shall approve the risk management report of the insurance enterprise and reinsurance enterprise before reporting to the Ministry of Finance. The authority to approve the risk management report of the foreign branch before reporting it to the Ministry of Finance shall comply with the foreign branch's operation regulations and the parent company's regulations.

Article 22. Responsibilities of the General Director (Director)

The General Director (Director) of the insurance enterprise, reinsurance enterprise shall be responsible for:

1. Promulgating professional process (including internal control process), professional ethical standards; internal regulations on risk management; reward and discipline regime; allocating risk limits according to each professional process and activity.

2. Organizing the implementation of internal control and risk management activities as prescribed in Sections 1 and 2 of this Chapter.

3. Inspecting and evaluating the implementation of internal control and risk management activities and deciding on adjustment and remedial solutions (if necessary).

4. Operating and completing the management information system.

5. Directing divisions of the first and second line of protection to coordinate with internal audits according to regulations on internal audits of insurance enterprises, reinsurance enterprises, and foreign branches.

6. Directing the implementation of the recommendations in the internal audit report and implementing the direction of The Boards of Directors/Members’ Councils (if any), notifying the internal audit division about the results.

 

Chapter III

IMPLEMENTATION PROVISIONS

 

Article 23. Effect

1. This Circular takes effect on January 01, 2023.

2. Any difficulties arising in the course of implementation should be promptly reported to the Ministry of Finance for consideration and settlement./.

 

 

FOR THE MINISTER
THE DEPUTY MINISTER

 

 


Cao Anh Tuan

 

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