Our risk strategy, the Framework Guideline on Risk Management and the system of limits and thresholds for material risks of our company constitute the central elements of our risk management system. The steering of all material risks is the task of the operational business units. The monitoring of all identified material risks is the responsibility of Group Risk Management.
The parameters and decisions of the Executive Board with respect to the risk appetite of our Group are fundamental to the acceptance of risks. These are based on the calculations of the company's risk-bearing capacity. Through our business operations on all continents and the diversification between our Property & Casualty and Life & Health reinsurance business groups we are able to effectively allocate our capital in light of opportunity and risk considerations and generate a higher-than-average return on equity.