No-IRDAIWelcomesYou.docVIP

Annexure III INVESTMENT RISK MANAGEMENT SYSTEMS PROCESSES GENERAL FRONT BACK OFFICE OPERATIONS Insurer having Assets under Management (AUM) in excess of Rs.500 Crores shall ensure separate personnel acting as fund manager and dealer. The Investment System should have separate modules for Front and Back Office. Transfer of data from Front Office to Back Office should be electronic without Manual intervention (Real time basis) i.e., without re-entering data at Back Office. The Insurer may have multiple Data Entry Systems, but all such Systems should be seamlessly integrated without manual intervention. The Front Office shall report through the Chief Investment Officer (CIO) to the Chief Executive Officer (CEO). The Mid Office and Back Office, to be headed by separate personnel, shall be under the overall responsibility of Chief Financial Officer (CFO) who shall independently report to the CEO. EMPLOYEE DEALING GUIDELINES The Standard Operating Procedure followed by the Insurer shall clearly specify the Guidelines to be adhered by the Dealer i.e., the Insurer shall clearly specify the Trading guidelines for Personal Investments of the dealer. The compliance of this requirement shall be commented upon by the Internal / Concurrent Auditor. MAKER CHECKER PROCESS Insurer should have the procedure of Maker / Checker mapped in their Standard Operating Procedure / Operations Manual of Investment Operations. The Internal / Concurrent Auditor shall comment on such practice in his report. AUDIT TRAIL AT DATA ENTRY POINTS The Audit trail should be available for all data entry points including at the Checker / Authorizer level. BUSINESS CONTINUITY PROCESS To ensure Business continuity, the Insurer should have a clear Off-site Back-up of Data in a City falling under a different Seismic Zone, either on his own or through a Service Provider. Further, the Insurer / service provider (if outsourced) is required to have the necessary infrastructure f