Risk Transfer
What is Risk Transfer?
A risk treatment strategy that shifts the financial impact of a risk to another party, typically through insurance policies or contractual arrangements.
Terms that appear alongside risk transfer
Each of these is named in at least one of the same controls as risk transfer. The number is how many controls name both.
- risk treatment 3 shared controls
- iso 31000 2 shared controls
- compliance 2 shared controls
- governance 2 shared controls
Frameworks that govern risk transfer
What the standards actually require on risk transfer
Requirements naming risk transfer across 6 standards, quoted from the control text.
Gives the key elements of a sound risk management system for credit risk transfer activities (securitisation, credit derivatives and similar): corporate governance, policies, procedures and limits, credit assessment and review, risk measurement and valuation,...
hkma-spm::CR-G-12 · CR-G-12 Credit Risk Transfer Activities →Ceding insurers must be able to demonstrate the economic impact of the risk transfer arising from their reinsurance contracts.
iais-insurance-core-principles-icps::13.3 · 13.3 Demonstrating the economic impact of the risk transfer →An originator may exclude securitised exposures from RWA only if significant credit risk has passed to third parties, the assets are legally isolated as confirmed by a true sale legal opinion, the transferor keeps no effective control, and there are no clauses...
basel-iii-international-banking-framework::CRE40 · Meet securitisation risk transfer, due diligence and hierarchy of approaches requirements →Cyber Insurance. RLEs should consider the benefits of purchasing a cyber insurance policy as part of their risk transfer strategy (para 24).
BMA-27 · Cyber Insurance →Catastrophe view of risk outputs are understood, used consistently and developed. Baseline: simple modelled outputs used across the business (underwriting, portfolio reporting, risk transfer); differences between models understood;
principles-for-doing-business-at-lloyd-s::P2.9 · 2.9 Consistent understanding, use and continual development of catastrophe outputs →Describe how responses to assessed risks are developed: matching controls to the protection of assets and to detecting, answering, limiting and recovering from security events;
soc-for-cybersecurity-cybersecurity-risk-management-examination::DC17 · DC17 Process for developing responses to assessed risks, including designing and implementing controls →Questions people ask about risk transfer
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