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A well structured system of the insurance corporate governance, with clearly defined duties and responsibilities, makes an essential component of the regulatory and supervisory framework. Corporate structure of the insurance company should have adequately established and assigned control and management responsibilities, with the obligations and responsibilities clearly stated and with a specific request in respect of qualifications required for persons members of their bodies. It is the precisely determined legal framework of corporate governance that prevents the board of management from abusing their privileged position at the expense of other stakeholders, and especially minority shareholders, creditors, policyholders and / or insurers. Risk management is a key mechanism of insurance operations, consequently, it should be comprehensive and well integrated into the corporate governance system of the insurance company. The Board of Directors or the Supervisory Board should establish a framework and an adequate risk management strategy (eng. 'risk management framework'), define the company's approach, risk management, methods for risk assessment and determine the responsibility of the management for the implementation of risk management policies.

Legal aspects of risk management and internal control system as integral part of corporate governance at insurance company