Controlled Risk-Taking Underpins Harringtonrm Financial Strength
Harringtonrm business model relies on effective risk management and controlled risk-taking, both of which are integral parts of our financial strength. Risk management is embedded methodically and structurally throughout our business to ensure that every risk taken is a good one.
Controlled risk-taking is crucial for insurers and reinsurers. To be reliable partners to clients when they need us and fulfill the role of ultimate risk managers, tight control of exposures is essential.
Our Risk Landscape
With experience and expertise developed over 25 years, Harringtonrm has become a leader in strategic planning, innovative risk management solutions, and agency administration. Our risk landscape is comprised of core categories including Strategy Facilitation, Payment Protection Plans, Extended Warranty for New/Used Vehicles, Hybrid/Electric Vehicles, Lithium Battery Sector, Speciality Risk Management, Administration Services, and Guaranteed Asset Protection.
Three Fundamental Principles
Harringtonrm bases its risk management system on three fundamental principles, applied consistently at group and legal entity level across all risk categories:
Transparency
Being transparent while sharing knowledge and responsiveness to change is an integral part of our risk control process. We strive to create a culture of mutual trust by reducing the likelihood of surprises in the potential magnitude and sources of losses.
Clear Management Style
Harringtonrm operations are based on the principles of clearly-defined and delegated authority. When an individual takes on risk, they are accountable for it, and Harringtonrm overall business objectives are aligned with individual incentives.
Controlled Risk Assessment
Harringtonrm operates with a clearly-defined risk control framework and risk policy, which are integral components of the company's value proposition. Together, these elements ensure sustainable value creation and financial strength.
A Clearly Defined Risk Control Framework
This comprises a body of standards that establish an internal control system for taking and managing risks. These standards set responsibilities for risk-takers and risk-controllers. The Risk Control Framework defines four key tasks:
Risk Identification
Risk identification makes risks manageable and controllable, ensuring that all risks to which the company is exposed are transparent.
Risk Measurement
Risk measurement allows Harringtonrm to control its total risk accumulations and risk-taking decisions, including passive risk exposure through operations.
Risk Tolerance and Appetite
The Risk Appetite Framework outlines business and investment plans, the implications of which must be understood and adhered to.
Risk Reporting
Risk reporting enables Harringtonrm to meet external disclosure requirements while creating internal risk transparency.
Steering You Through Uncertainty
Risk appetite and risk tolerance are the two interlinked components at the core of Harringtonrm Risk Appetite Framework. These components address where and how the company's liquidity, capital, and other resources should be deployed under a risk-return view.
Harringtonrm proprietary integrated risk model represents an essential tool for managing the business and provides a meaningful assessment of exposed risks. The model also forms the basis of regulatory reporting and helps determine capital requirements for internal purposes.