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HaldenRMF: Risk Management Framework

Halden · Risk framework for a Lloyd's managing agent

RMF: Risk Management Framework

We designed it for the board. One page covers every part of managing risk, from the limits the board sets to the signs seen each day. Each part is named in plain words. Here it is on Halden, a fictitious Lloyd's managing agent.

Reporting runs through every box
How much risk we'll takeAppetiteComing soonWhat we doPoliciesComing soonExternal risksEmerging risk registerComing soonInternal risksRisk registerComing soonHow we do itProcess mapComing soonThe telltale signsControls, indicators, actions, incidents, complaintsComing soon

The six components of our risk management framework

  • How much risk we'll take

    Appetite

    The board sets how much risk it will take, starting with a few statements for the whole firm. Each limit is tied to capital or to an indicator. Actions are agreed in advance and start when a limit is reached.

    Coming soon

  • What we do

    Policies

    Each policy is broken into principles: short commitments the business can be tested on. Each principle has an owner and says what good looks like. The controls the business already runs show that each one is met.

    Coming soon

  • External risks

    Emerging risk register

    Threats from outside sit on three horizons: this year's plan, the strategy and the vision. Each is tracked by indicators that others publish, such as market or climate data. Each links to the limits it would test.

    Coming soon

  • Internal risks

    Risk register

    The register starts from the capital model, so every risk sits on a line of capital. Each risk has a plain description, its drivers and its causes. Start with a few causes, then add more as the firm matures.

    Coming soon

  • How we do it

    Process map

    Each key process is drawn as a route with checkpoints. Each checkpoint shows who does the work and what goes in and out. Causes and principles are pinned where the work happens, so you know what to watch, and where.

    Coming soon

  • The telltale signs

    Controls, indicators, actions, incidents, complaints

    These are the signs that show how things are going each day. Each one sits on the cause or principle it belongs to. When one moves, you see which risks, limits and processes it touches.

    Coming soon

Coming soon

Who oversees it

A preview of how each part of the framework gets a committee that reads it and a line to the board.

  • From the working groups to the board. The chart shows how the working groups and management committees feed up through the executive and the board committees.
  • What each committee reads. Each one reads the parts of the framework it is responsible for, and passes up what the level above needs.
  • What Lloyd's looks for. Each committee shows what Lloyd's looks for from it, under the Principles for doing business at Lloyd's (28 November 2024).

Next: terms of reference and the meeting calendar, linked to each committee.

Plans for using AI in our framework In build

A control update, ready for you to approve

Microsoft Copilot, or another AI your firm already uses, will do the work. We are building the harness.

  1. Your team sets the access. Your teams decide which folders Copilot can see.
  2. Your Copilot will bring the evidence. A person will tell it where to look. It will pass the evidence to CoVi Analytics through our MCP connector, a standard link between the two.
  3. A named person will approve. CoVi Analytics will keep a snapshot for the audit trail.

We never deploy our own AI. CoVi Analytics never looks in your folders.

How bring your own AI works

Looking to optimise your RMF so your board can read it on one page? Get in touch.

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