Examples of Prudent person principle in a sentence
Prudent person principle has been applied in assessing investment in the Company’s assets.
Operational risk34C.3 Risk mitigation 34C.4 Prudent person principle for asset investment 35C.5 Stress and scenario tests 36 D.
Prudent person principle – management of assetsStandard Club can invest in a range of assets and instruments whose risks it can sufficiently identify, measure, monitor, manage, control and report, and appropriately take into account in the assessment of its overall solvency.
Prudent person principle establishes that an investment manager must give appropriate consideration to the fact and circumstances of investments, in light of the role it plays within the entire portfolio.
Insurers are already required to consider the risk which may arise through concentrations and large exposures as part of the ERM requirements introduced by73 Prudent person principle is defined under Solvency II as a legal rule requiring investment advisers to only make investments for their clients that a prudent person would make.
Prudent person principle The Company makes investment decisions that take into account all investment-related risks, not only risks considered in the calculation of its capital requirement.
By investing in relatively simple assets, the Company fulfils the Prudent person principle because it is able to properly understand its investment risks.The ultimate parent AFSI manages the investment portfolios on behave of the Luxembourg entities.Risk sensitivitiesThe Company carries out stress and scenario testing as part of the ORSA process.
This policy will be reviewed in three years or sooner if there are legislative changes.
By investing in relatively simple assets, the Company fulfils the Prudent person principle because it is able to properly understand its investment risks.The ultimate parent AFSI manages the investment portfolios on behave of the Luxembourg entities.C.2.4 Risk sensitivitiesThe Company carries out stress and scenario testing as part of the ORSA process.
C.1. Underwriting Risk 50 C.2. Market Risk 50 C.2.1. Prudent person principle 50 C.2.2. Interest Rate Risk 50 C.2.3. Equity Risk 51 C.2.4. Property Risk 51 C.2.5. Spread Risk 51 C.2.6. Market Concentration Risk 52 C.2.7. Loan portfolio 52 C.2.8. Collateral arrangement 52 C.2.9. Securities lending 52 C.2.10.