Risk management and control
Managing risk is an integral part of Gjensidige’s day-to-day operations. Identification, assessment, management and control of risk exposure as well as analyses of the effects of potential strategic decisions on the risk profile are an essential part of operations. The aim is to ensure that the level of risk-taking is in keeping with the approved risk appetite and to enhance value creation.
Risk management system
Risk management is part of Gjensidige's corporate governance and is described in Note 3 to the annual report.
Gjensidige's governance structure
The General Meeting is the Company’s supreme governing body. It has an independent nomination committee that nominates members to the Board. The Board has overall responsibility for ensuring that the Group is managed responsibly, including responsibility for strategy, finances, the environment, social conditions and compliance with laws and regulations. This entails ensuring that the work on risk management and internal control is organised, documented and reported on in an expedient manner.
The Board has appointed three sub-committees consisting of selected board members: the Organisation and Remuneration Committee, the Audit Committee and the Risk Committee. The Audit Committee is a preparatory committee tasked with monitoring the financial reporting process, the efficiency of risk management and internal control systems, and the Company’s internal audit. The Risk Committee is also a preparatory committee tasked with assessing the group companies’ ability and desire to take risk. It will ensure a link between the overall strategy, risk management and capital planning. The Organisation and Remuneration Committee assists the Board on matters relating to remuneration.
All committees aim to strengthen and streamline the Board’s discussions and contribute to improvements in the future. Gjensidige Forsikring ASA has established strategies, policies and more detailed guidelines, procedures and authorisations for its main risk areas. Group policies shall be adopted by the board of each group entity based on local legislation.
The CEO has chief responsibility for the Group’s day-to-day risk management.
The Group’s Capital Management Committee is tasked with monitoring and allocating capital throughout the Group. The committee also has an advisory role in assessing and proposing changes in the use of capital. The Group’s Risk Control Committee is tasked with helping to monitor and follow up the Group’s risk situation, risk management and internal control. Both committees are chaired by the CEO. In addition to these two committees, a sustainability council has been set up that is chaired by the Head of Sustainability. The council is an interdisciplinary body tasked with ensuring a uniform approach to sustainability issues within the Group. The council may raise sustainability-related issues with the Capital Management Committee or the Risk Control Committee as needed.
Capital management
Gjensidige shall have a capitalization that is adapted to the Groups strategic targets and risk appetite at all times.
The group shall maintain its financial flexibility and at the same time exercise a stringent capital discipline that supports the return on equity target. Any future excess capital will be distributed to the shareholders over time.