Article 51. Requirements for Internal Control and Risk Management System

Insurance (reinsurance) organizations shall be obliged to comply with the requirements established by the authorized state body for the internal control and the risk management system. The requirements of the authorized state body shall take into account the systemic significance, specifics, scale and complexity of the type of activities carried out by the insurer (reinsurer).

The requirements of the authorized state body to the internal control and the risk management system shall include:

ensuring the completeness, reliability and timeliness of financial, supervisory and other reporting for prudential requirements;

having an approved policy for identifying and managing significant risks, conducting stress testing, as well as a reporting system for significant risks and capital;

consistently executing and complying with the policy on managing risks significant for the insurer (reinsurer) and evaluating their effectiveness;

exercising control by the supervisory board over compliance with the limits of risks and capital established by internal documents, the effectiveness of the procedures used by the insurer (reinsurer) to manage risks.