7
Own Risk and Solvency Assessment (ORSA)
7.1
The PRA expects firms to assess risks on a forward-looking basis, covering business plan and strategy timelines, and reflect the specific risk profile and governance mechanisms of each entity or group.
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7.2
In SS26/15 the PRA has set out its expectations for non-life firms regarding the option of demonstrating that their risks have been projected to the ultimate time horizon.[9] Firms should ensure that they capture own capital needs and reflect business risk profiles over both the short-term and the long-term.
Footnotes
- 9. Supervisory Statement 26/15, ‘Solvency II: ORSA and the ultimate time horizon – non-life firms’, June 2015; https://www.bankofengland.co.uk/prudential-regulation/publication/2015/solvency2-orsa-and-the-ultimate-time-horizon-non-life-firms-ss.
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7.3
As part of its supervisory process, the PRA will review ORSA reports on a risk-based and proportionate basis.
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