Operational risk | Operational risk is understood to be the risk of losses resulting from inadequate or failed internal processes, people and systems, or from external events. With operational risk management (ORM) in the form of an internal control system (ICS), Swiss Life aims to identify, evaluate, manage and reduce these risks. The identified risks are monitored and steered on the basis of the value chain and the defined risk tolerance with the aim of ensuring that operations run smoothly. The focus is on the effectiveness of business processes (operations), reliability of financial reporting and adherence to the relevant laws and regulations (compliance). In this connection, the Board of Directors launched the Internal Control System project in the spring of 2007, which – together with the market units – defined the framework for the ICS. At the end of 2008, the implementation of the ICS will be assessed by the external auditors for the first time.
