Risk Management

  1. BACKGROUND
    Application of Risk Management at PT. Asuransi Sumit Oto (ASO) is based on several things:
    1. The financial industry is an industry that has operational complexity and a high level of competition. With the development of globalization, information technology, product innovation and the activities of the Financial Services Institution itself, it has created a complex, dynamic, and interrelated financial system between each financial service sector, both in products and institutions, as well as ownership, which ultimately leads to the financial industry. exposed to high risk and must operate prudently and efficiently.
    2. To overcome this condition, a comprehensive risk measurement is required which can directly or indirectly affect the business continuity of the Financial Services Institution.
    3. Through the application of risk management, Financial Services Institutions will benefit from, among others, better risk management, determination of risk appetite and risk tolerance in accordance with the complexity and characteristics of the Financial Services Institution's business, financial system stability that grows sustainably which in turn improves competitiveness. national.
    4. Compliance with the provisions of the Financial Services Authority.
    The scope of the risk management implementation policy of PT. Asuransi Sumit Oto (ASO) consists of 2 (two) scopes in accordance with regulatory requirements, namely:
    1. Scope of implementation of POJK 10 and SEOJK 3.
      Implementation of POJK 10 / POJK.05 / 2014 concerning "Assessment of Risk Level of Non-Bank Financial Services Institutions", SEOJK 3 / SEOJK.05 / 2015 concerning "Assessment of Risk Levels of Insurance Companies and Reinsurance Companies", POJK 1 / POJK.05 / 2015 concerning "Application of Risk Management for Non-Bank Financial Institutions", as well as SEOJK 10 / SEOJK.05 / 2016 concerning Guidelines for Risk Management Implementation and Self-Assessment Report on Risk Management Implementation for Non-Bank Financial Services Institutions ". There are 7 (seven) types of risk that must be managed within the scope of ASO Risk Management, namely
      1. Management Risk.
      2. Governance Risk.
      3. Strategic Risk.
      4. Operational Risk.
      5. Asset and Liability Risk.
      6. Insurance Risk.
      7. Fund Support Risk (Capital)./li>
    Scope of implementation of POJK 17 and SEOJK 14.
    The implementation of POJK 17 / POJK.03 / 2014 and SEOJK no.14 / SEOJK.03 / 2015 concerning "Implementation of Integrated Risk Management for Financial Conglomerates" is aimed at the Main Entity in charge of integrating policies, procedures and consolidating integrated risk profile reports. There are 10 (ten) types of risk that must be managed in Integrated Risk Management by the Main Entity, namely,
    1. Credit Risk
    2. Market Risk
    3. Liquidity Risk.
    4. Operational Risk.
    5. Legal Risk.
    6. Reputation Risk.
    7. Strategic Risk.
    8. Compliance Risk.
    9. Intra-group Transaction Risk.
    10. Insurance Risk.
  2. RISK MANAGEMENT COMMITTEES AND ORGANIZATIONS
    To support an effective risk management implementation process, OJK through its regulations requires LJK to form a Risk Management Committee and Organization.
    1. Risk Oversight Committee.
      1. The Risk Monitoring Committee (hereinafter referred to as "ROC") is a committee at the Board of Commissioners level that monitors the implementation of Risk Management principles and practices and the overall risk exposure within the scope of ASO.
      2. The basis for the formation of the ROC follows the provisions as stipulated in SEOJK no. 14 / SEOJK.05 / 2019 which applies to insurance companies.
      3. The ASO Board of Commissioners determines the membership composition of the ROC as follows:
        1. Rohana Sumihar, Independent Commissioner as Chairman and member.
        2. Njoman Sudartha, Commissioner as member.
        3. Muhamad Fahrozi Zaelani, member with expertise in Risk Management.
      4. The ROC is tasked with assisting the Board of Commissioners in monitoring the implementation of Risk Management prepared by the Board of Directors as well as assessing risk tolerance that can be taken by the Company, including:
        1. Assessing the effectiveness of risk management, including assessing the risk tolerance that can be taken by the Company.
        2. Conduct periodic evaluations of the application of risk management.
        3. Evaluating the ROC charter periodically in accordance with developments in the provisions of laws and regulations.
        4. Identify other matters which according to the ROC require the attention of the Board of Commissioners.
        5. Performing other assignments from the Board of Commissioners as long as the assignment has been stipulated in the ROC charter.
      5. The ROC meeting must be held at least 1 (one) time in 3 (three) months. Meetings can be held more than the regular schedule if needed.
      6. The mechanism for organizing meetings is technically regulated separately in the applicable committee charter document.
    2. Risk Management Committee.
      1. The Risk Management Committee (hereinafter referred to as "RMC") is a Board of Directors level committee that implements the implementation of Risk Management policies and the overall risk exposure within the scope of ASO.
      2. The basis for establishing RMC is an indirect reflection for ASO as a member of the Sinar Mas Financial Services Financial Conglomerate in relation to the regulations on the Application of Integrated Risk Management for Financial Conglomerates as referred to in POJK No.17 / POJK.03 / 2014.
      3. The Board of Directors of ASO determines that the RMC membership consists of:
        1. Rio Ekasaputra, Director of Compliance as Chairman and member.
        2. M. Haryadi Jayaputra, President Director of the member.
        3. Daniel Liswandi, Director as member.
        4. Zul Herry Harahap, Director as member.
      4. The powers and responsibilities of the RMC are: In carrying out its functions, RMC has the authority and responsibility in providing recommendations to the President Director which at least includes,
        1. Formulation of policies, strategies, and guidelines for implementing risk management.
        2. Improvement or refinement of risk management implementation based on the results of evaluation of risk management implementation.
        3. Determination of matters related to business decisions that deviate from normal procedures.
      5. RMC meetings are held at least 1 (one) time in 3 (three) months. Meetings can be held more than the regular schedule if needed.
      6. The mechanism for organizing meetings is technically regulated separately in the applicable committee charter document.
    3. Risk Management Unit.
      1. The Risk Management Unit is directly responsible to the Director in charge of the risk management function.
      2. The Risk Management Work Unit can involve all related work units that are members of the Risk Management working group (champion unit) with the aim of making the risk management process run effectively.
      3. The powers and responsibilities of SKMR include:
        1. Identify all types of risks that have the potential to hinder, lower the goals that the company will achieve.
        2. Analyze risks by knowing the profiles and maps of existing risks and will be used in risk management in every line of the company's business.
        3. Evaluating risks by setting risk priorities and seeing whether the intended risk is handled or not.
        4. Carry out risk management in order to determine the type of effective and efficient treatment for a risk.
        5. Monitor the implementation of risk management policies.
        6. Conduct reviews that aim to anticipate sudden changes in risk, including conducting reviews, providing opinions or recommendations on new product proposals or company activities and corporate corporate plans.
        7. Provide information to RMC on matters that need to be followed up immediately.
        8. Communicating with the aim of obtaining relevant information and communicating any risks so that the parties involved can carry out their duties and responsibilities properly.
        9. The implementation of a consultation process with internal and external stakeholders.
        10. Carry out stress testing and collaborate with the Company's actuaries.
        11. Carry out regular reviews to ensure:
          1. The accuracy of the risk assessment methodology.
          2. Adequacy of risk management information system implementation.
          3. The accuracy of policies, procedures and determination of risk limits.
        12. Prepare and submit reports on risk profiles and risk management activities in the scope of implementation of Risk-Based Supervision (POJK 10), individual risk profiles (POJK 17), reports on risk management implementation, and reports on other risk management activities to committees, Main Entity, shareholders controllers and OJK.
      4. The structure of the risk management champion unit is as follows:
        DIRECTORI IN CHARGE OF THE RISK MANAGEMENT FUNCTION
         
        RISK MANAGEMENT (CHIEF) Muhamad Fahrozi Zaelani
         
        RISK CHAMPION (MEMBER) All Head Unit of ASO