RISK MANAGE ONE PRIORITY FOR MAV INSURANCE. THIS YEAR FOCUSSED ON THE DOCUMENTATION OF PROCEDURES, POLICIES AND MONITORING PROCESSES TO MINIMISE MEMBERS’ EXPOSURE TO RISKS. AUDIT PROCESS RISK MANAGEMENT STRATEGY As part of the MAV’s application for an MAV insurance adopted a tighter audit process Australian Financial Services License (AFSL) for during 2003/04 to further improve risk management by testing the effectiveness of its insurance business, a Compliance and Risk councils’ systems. The audit included Management Strategy was developed for both CMP and the Municipal Officers Fidelity assessment of high risk areas such as the Guarantee Fund. The strategy consists of two management of contracts, trees, roads and major components: footpaths. Emphasis was also placed on the traceability of inventories, inspections, RISK MANAGEMENT PLAN maintenance activities and proof of completed As part of the overall strategy for risk works. Councils were required to provide management, a Compliance and Risk documentary evidence that proactive risk Management Plan was developed for CMP and management occurs. the Municipal Officers’ Fidelity Guarantee Fund A more stringent scoring criteria was adopted that sets out specific procedures and key to prevent subjectivity of the audits including information that MAV Insurance must follow in increasing the scoring system to a zero to five order to comply with the spirit of APRA. The rating to reflect outstanding risk management plan also highlights the roles and performance. responsibilities of the Insurance Committee and the MAV Insurance Compliance Officer. As the benchmark was lifted many council members’ overall risk management scores RISK ANALYSIS decreased from the 2002/03 assessment. Specific detail about MAV Insurance’s obligations under the Corporation Act, ASIC GOVERNANCE policy, AFSL and internal policies was provided Policies and procedures were put in place to to ASIC in the form of a Compliance and Risk address fitness and propriety of members of the Analysis Table. The table documents the: Insurance Committee and the responsible · Risk of non compliance officers of the MAV in accordance with criteria · Priority of risk set by APRA. · MAV Insurance compliance and monitoring The development of a Risk Management procedures Strategy included MAV Insurance policies, FUTURE DIRECTIONS procedures, processes and control systems A sub-committee has been established in both appropriate to the size, business mix and complexity of the organisation’s operations. Victoria and Tasmania to review this year’s audit before developing the 2004/05 process and criteria. 18 MAV INSURANCE ANNUAL REPORT 2003/4
RISK MANAGE ONE PRIORITY FOR MAV INSURANCE. THIS YEAR FOCUSSED ON THE DOCUMENTATION OF PROCEDURES, POLICIES AND MONITORING PROCESSES TO MINIMISE MEMBERS’ EXPOSURE TO RISKS. AUDIT PROCESS MAV insurance adopted a tighter audit process during 2003/04 to further improve risk management by testing the effectiveness of councils’ systems. The audit included assessment of high risk areas such as the management of contracts, trees, roads and footpaths. Emphasis was also placed on the traceability of inventories, inspections, maintenance activities and proof of completed works. Councils were required to provide documentary evidence that proactive risk management occurs. A more stringent scoring criteria was adopted to prevent subjectivity of the audits including increasing the scoring system to a zero to five rating to reflect outstanding risk management performance. As the benchmark was lifted many council members’ overall risk management scores decreased from the 2002/03 assessment. GOVERNANCE Policies and procedures were put in place to address fitness and propriety of members of the Insurance Committee and the responsible officers of the MAV in accordance with criteria set by APRA. The development of a Risk Management Strategy included MAV Insurance policies, procedures, processes and control systems appropriate to the size, business mix and complexity of the organisation’s operations. RISK MANAGEMENT STRATEGY As part of the MAV’s application for an Australian Financial Services License (AFSL) for its insurance business, a Compliance and Risk Management Strategy was developed for both CMP and the Municipal Officers Fidelity Guarantee Fund. The strategy consists of two major components: RISK MANAGEMENT PLAN As part of the overall strategy for risk management, a Compliance and Risk Management Plan was developed for CMP and the Municipal Officers’ Fidelity Guarantee Fund that sets out specific procedures and key information that MAV Insurance must follow in order to comply with the spirit of APRA. The plan also highlights the roles and responsibilities of the Insurance Committee and the MAV Insurance Compliance Officer. RISK ANALYSIS Specific detail about MAV Insurance’s obligations under the Corporation Act, ASIC policy, AFSL and internal policies was provided to ASIC in the form of a Compliance and Risk Analysis Table. The table documents the: · Risk of non compliance · Priority of risk · MAV Insurance compliance and monitoring procedures FUTURE DIRECTIONS A sub-committee has been established in both Victoria and Tasmania to review this year’s audit before developing the 2004/05 process and criteria. 18 MAV INSURANCE ANNUAL REPORT 2003/4
2003-04-insurance-report.docx