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The risk management system and the risk culture pertain to the organisation of the insurance undertaking and face the risk, which is a multifaceted concept challenging such an organisation. This chapter analyses the perimeter of the risk management system to identify the risks that fall within this system and the persons who, within the insurance undertaking, are responsible for ensuring an effective risk management system to the supervisory authority. The chapter also investigates how corporate bodies can assess the head of the risk management function and the risk management system can incorporate risk culture. Lastly, the chapter illustrates concrete actions the persons with the ultimate responsibility of the risk management system can perform to comply with the task to promote, implement and monitor the risk culture.

The Risk Management System, the Risk Culture and the Duties of the Insurers’ Directors