Risk budgeting | The key tasks of risk management comprise the breakdown of risks into risk classes and their analysis, measurement and control. Swiss Life uses the following risk classes in its risk models:
- Market risks: equities, interest, & currencies
- Credit risks: investments and reinsurance
- Underwriting risks: mortality, longevity, disability and customer behaviour
- Operational risks: people, processes, systems and external factors
Based on the economic evaluation of assets and liabilities, financial risk specialists assess the amount of risk capital available and the Group’s risk capacity derived from this amount. The risk capital limits are set with regard to the market and credit risks entered into. There are also thresholds for foreign exchange as well as equities and equity-type securities.
