Final Review Draft ISAP 6 – Enterprise Risk Management Programs 31 July 2018

and IAIS Insurance Core Principles

## Preface

#### This International Standard of Actuarial Practice (ISAP) is a model for actuarial standard- setting bodies to consider.

The International Actuarial Association (IAA) encourages relevant actuarial standard-setting bodies to maintain a standard or set of standards that is substantially consistent with this ISAP to the extent that the content of this ISAP is appropriate for actuaries in their jurisdiction. This can be achieved in many ways, including:

- • this ISAP as a standard with only the modifications in the Drafting Notes; • this ISAP as a standard with only the modifications in the Drafting Notes;
- • this ISAP by revising the text of the ISAP to the extent deemed • this ISAP by revising the text of the ISAP to the extent deemed appropriate by the standard-setting body while ensuring that the resulting standard or set of standards is substantially consistent with this ISAP;
- • this ISAP by declaring that this ISAP is appropriate for use in certain clearly • this ISAP by declaring that this ISAP is appropriate for use in certain clearly defined circumstances;
- • existing standards to obtain substantial consistency with this ISAP; or • existing standards to obtain substantial consistency with this ISAP; or
- • that existing standards are already substantially consistent with this ISAP. • that existing standards are already substantially consistent with this ISAP.

A standard or set of standards that is promulgated by a standard-setting body may be considered to be substantially consistent with this ISAP if:

- • are no material gaps in the standard(s) in respect of the principles set out in this • are no material gaps in the standard(s) in respect of the principles set out in this ISAP; and
- • standard or set of standards does not contradict this ISAP. • standard or set of standards does not contradict this ISAP.

If an actuarial standard-setting body wishes to adopt or endorse this ISAP, it is essential to ensure that existing standards are substantially consistent with ISAP 1 as this ISAP relies upon ISAP 1 in many respects. Likewise, any customization of this ISAP, or modification of existing standards to obtain substantial consistency with this ISAP, should recognize the important fact that this ISAP relies upon ISAP 1 in many respects. If this ISAP is translated for the purposes of adoption, the adopting body should select three verbs that embody the concepts of “must”, “should”, and “may”, as described in paragraph 1.6. Language of ISAP 1, even if such verbs are not the literal translation of “must”, “should”, and “may”.

#### This ISAP is a model standard of actuarial practice and, as such, is not binding on any actuary.

This ISAP was adopted by the IAA Council in [month year].

##### [Drafting Notes: when an actuarial standard-setting organization adopts this standard, it should:

- 1. Replace “ISAP” throughout the document with the local standard name, if applicable;
- 2. Modify references to ISAP 1 in paragraphs 1.3., 2.2. and 3.1. to point to the local standard(s) that are substantially consistent with ISAP 1 rather than referring to ISAP 1 directly, if appropriate;
- 3. Modify the reference to ISAP 5 in the Introduction, if appropriate;
- 4. Choose the appropriate phrase and date in paragraph 1.6.;

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