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For over five years, SCOR has been carrying out a demanding assessment and prevention programme for all of the risks faced by the Group, as part of its Enterprise Risk Management (ERM) project. This strategic initiative aims to protect SCOR’s results and shareholders’ equity by assessing its risk exposure and evaluating the reasonable tolerance level for each risk, as set out in the strategic "Dynamic Lift" plan that was presented to the market in 2007. ERM is now firmly embedded in the day-to-day activities of the Group’s various entities. In 2008, SCOR demonstrated considerable good judgement in the face of the financial crisis and further strengthened its Risk Management culture in order to enhance Group protection.

SCOR is in the business of reinsuring insurance risks, with the objective of providing good returns for its shareholders and the security of a high level of solvency for its clients. To achieve these objectives, SCOR relies primarily on the expertise, knowledge and cooperation of all its expert underwriting and Risk Management teams. SCOR’s efficient Risk Management policy proved itself in 2008. The SCOR group’s approach to risk is based on the definition and global management of capital in accordance with the expectations of all parties involved. Thus several decisions were made in anticipation of the current crisis, such as the refusal to commit to share repurchase programmes and the accumulation of EUR 3.7 billion in liquidities over the past three years. SCOR cleared its debts and as of 2003 eliminated off balance sheet commitments. The Group also reorganised its entire share portfolio so as to reduce its sensitivity to economic and financial developments - only 4% of the Group’s EUR 19 billion assets is invested in equities.

The Group’s Risk Management is based essentially on a concept of ERM that is very much adapted to SCOR’s needs and is at the centre of the Group’s strategy. The basic objective of ERM is to manage the use of capital in a controlled and transparent fashion, applying best practice risk management techniques within a clearly communicated risk reward strategy.