Risk Assessment (E) Working Group
November 30, 2007
The Risk Assessment Working Group conducted business via e-mail on November 30, 2007. In conducting this business, the Working Group:
Adopted the report of the Risk Assessment Implementation Subgroup, which held three conference calls during the past quarter. On its first conference call, the Subgroup discussed and adopted a response to the Financial Regulation Standards and Accreditation (F) Committee relating to comments received on the proposed revisions to the NAIC Accreditation Review Team Guidelines in accordance with risk-focused examinations. On its second call, the Subgroup discussed the advanced training materials it had received from the Casualty Actuarial (C) Task Force and the Life & Health Actuarial (A&B) Task Force relating to reserving, pricing & underwriting, and liquidity risks. Finally, on its third conference call, the Subgroup discussed the creation of new examination repositories to assist examiners by providing a reference list of the most common risks, controls and test procedures that can be performed on an examination of various key activities at an insurer. In addition, the Subgroup discussed and revised a proposed examination repository for the key activity of investments.
Adopted the report of the Risk Assessment Prioritization Subgroup, which recommended the discontinuation of work on the CARRMEL prioritization tool and disbanding of the Subgroup. In addition, the report outlined referrals that had been sent to the Analyst Team System Oversight Working Group and the Financial Analysis Research and Development Working Group regarding the incorporation of certain aspects of the CARRMEL methodology into existing confidential financial solvency prioritization tools.
Action Items: