Ways of improving risk management function in insurance companies

Abstract

The concept of this work is improvement of risk management function according to Solvency II directive framework. The authors have created an insurance company’s risk catalogue for identification, classification and assessment of possible risks that is a reasonable solution for risk management function improvement. The authors also have offered the loss database implementation algorithm which helps to realize and improve operational risk management. However the authors have created the operational risk ranking method which helps to discover possible solutions to minimize the probability of operational risk event and in case of operational risk to reduce the possible company’s loss.