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The CISSA and GSSA Review Process

Delivering value and insights to your business

Institute of Internal Auditors , Bermuda Chapter6th November 2014

Stephen KellyHead of Advisory ServicesE: [email protected]: +1 441 279 6113M:+1 441 537 2747

Lucinda HallanDirectorE: [email protected]: +44 (0) 20 7865 2252M:+44 (0) 7779 294 411

Steamship Mutual Sanctions | September 2014

2© 2014 Grant Thornton UK LLP. All rights reserved.

Our agenda

ORSA vs CISSA – context & drivers

CISSA – key principles

ORSA – key inputs

CISSA in action – 3 levels of maturity

Be "submission-ready"

Be "review-ready"

Reap the real business benefits

The role of the 3rd line of defense in the CISSA process

Reviewing a CISSA – a basic checklist

Key questions for your business

Discussion



ORSA vs CISSA – context and drivers

Solvency II

Equivalence

Use as regulatory

tool

Supervisory approach

Distinction between

process and submission

Degree of Intervention

Not a single lens

Single version of

truth

Structure& use



CISSA – key components

Performed, reviewed and

approved by the board/senior management

Encompass all material risks

and the relationship between risk

and the quantity and quality of capitalInclude the

determination of financial resources

given the risk tolerance and

business plans

Documented

Use test: integrated into

the management process and

decision making



ORSA – key components

Business model description

Risk management

framework and process description

Application of risk appetite and tolerance

Forward looking assessment of

overall solvencyneeds

Stress testing and scenario

analysis framework

Capital and liquidity contingency

plans

Evidence of embedding

and 'use'

Independent review



CISSA in action – 3 levels of maturity

"SUBMISSION-READY"

"ON-SITE READY"

"REAP THE BUSINESS BENEFITS"

CISSA viewed primarily as

a regulatory filing

CISSA viewed as a

supervisory tool

CISSA triggers

improvements in business

information and decision-

making



Be "Submission-Ready"

• Focus on generating and signing off the report

• One filing among many

• "What have we done, what can we prove?"

• Little recognisable integration into business planning



Be "On-site Ready"

• Documented processes and higher CISSA profile

• More future-facing

• More frequent iteration

• Demonstrable influence on decision-making



Reap the business benefits

• Solvency self-assessment viewed as a management tool

• Single view integrating solvency with other metrics / lenses

• Full alignment between CISSA exhibits and MI dashboard

• Shorter more powerful outputs

• Integrated business planning



CISSA and the 3rd line of defense

• How mature is the operating model?

• Highlighting key man risks in senior decision-making

• Making sure the right people "speak CISSA"

• Chasing transparency



Some questions for your business

• Do you have a single view of management information – do you need it?

• What information about risk, performance and solvency would senior execs like to see as a decision-making tool – do they get this currently?

• How does your business evidence use of solvency and risk-related information in decision-making?

• Would you be ready for a more interactive supervisory stance?



Thank you – any questions?

Contact detailsStephen KellyHead of Advisory ServicesE: [email protected]: +1 441 279 6113M:+1 441 537 2747

Lucinda HallanDirectorE: [email protected]: +44 (0) 20 7865 2252M:+44 (0) 7779 294 411

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