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Allianz Annual Report 2012

Annual Report 2012    Allianz Group In order to adapt to a continually changing environment, the Global Issues Forum (GIF) supports the Group in the assessment of long-term trends changes in the risk land- scape on a timely basis. This includes activities such as desk research, interviews with internal and external experts and workshops to evaluate potential impacts on our com- pany and propose necessary actions to take. The process is jointly coordinated by Group Risk, the Group Risk Commit- tee and the Group Underwriting Committee. As an active participant of the Emerging Risk Initiative of the Chief Risk Officer Forum, we monitor with other chief risk officers of major European insurance companies and financial conglomerates the industry-wide risk landscape andraiseawarenessofmajorrisksfortheinsuranceindustry. Risk management priorities for 2013 In addition to maintaining our high standards and prac- tices in day-to-day risk control and risk management, the risk function has set three priorities for 2013. Our first priority is to continue to refine and improve our operational business steering frameworks in light of the lessons learned from the recent financial market uncer- tainty – in particular associated with sovereign debt, includ- ing risk measurement and limits. Secondly, we plan to take advantage of the delay in the implementation of Solvency II to finalize the industrializa- tion of our internal risk capital model and Market Value Balance Sheet reporting processes. More specifically, after several years of project work and experience using our re- porting systems infrastructure, we plan to meet our “Target Closing Process” for the internal risk capital model and Mar- ket Value Balance Sheet by the end of 2013. The target clos- ing process will lead to shorter timelines, greater efficiency and greater controls. As a by-product, it will also allow the risk function to continue to move more from risk control to risk management, thereby supporting good risk/return de- cisions across the company on a daily basis. Our third priority is to continue our preparations for the Solvency II internal model application process. To this end, we will continue to provide constructive feedback to EIOPA in order to influence a business-friendly final outcome and we will be participating in the Long Term Guarantee Impact Assessment in the first half of 2013. In addition, we will con- tinue to actively participate in the voluntary pre-approval process for Solvency II with the relevant European super­ visors. Finally, given the remaining uncertainty surround- ing the final implementation measures and their interpre- tation, we will need to adapt our internal risk capital framework and risk processes as necessary to comply with the evolving Solvency II standards. C Group Management Report Risk Report and Financial Control 184 Risk Report 214 Controls and Procedures 213