Sustainability Report 2015
Risk behaviour
The risk strategy of Hannover Re approved by the Executive Board defines both the strategic orientation and the risk appetite. Furthermore, we manage natural perils business – which is subject to particular volatility – by specifying risk measures, limits and thresholds in order to reduce potential accumulation risks for the Hannover Re Group. With our General Underwriting Guidelines and Special Underwriting Guidelines we have at our disposal dedicated policies that substantiate our business decisions. Our underwriters receive regular training as required. The policies and strategy are made available to all underwriters and are consistently applied.
As a general principle, every identified risk that is considered to be material is evaluated quantitatively by Hannover Re. Only risk types for which quantitative risk measurement is currently not possible or scarcely practicable are qualitatively evaluated, for example by means of expert assessments. Such risks include, for example, strategic risks and reputational risks.
Risk management is permanently integrated into Hannover Re's business processes. It is supported by transparent risk communication and an open approach to dealing with risks. Risk communication takes the form of, among other things, internal and external risk reports, information on current risk complexes published in the intranet and training activities for staff. The regular sharing of information between risk-steering and risk-monitoring units is fundamental to the proper functioning of risk management.