MONITORING BUSINESS RISKS To navigate the broad spectrum of risks associated with our business – P&C and L&H underwriting, asset management, internal operations, strategic considerations, and more – SCOR has developed a comprehensive risk management system. At the strategic level, the Risk Management team collaborates with executive management and the Board to establish SCOR’s Risk Appetite Framework. This framework is a key part of SCOR’s overall strategy, defining the nature and quantity of risks the company is willing to accept and balancing the Group’s risk profile, available capital, and profitability. The Enterprise Risk Management (ERM) framework is another critical component of SCOR’s risk management system. It includes various mechanisms to identify, assess, manage, or mitigate risks. For instance, regular risk dashboards provide concise reporting on the Group’s risk profile and the external risk landscape, while risk analyses offer in-depth exploration of specific risk areas. MANAGING THE IMPACT OF EMERGING RISKS ON OUR BUSINESS In 2024, SCOR again observed an acceleration of climate-related, geopolitical, and technological risks worldwide. SCOR continuously monitors exposure to major risks such as these thanks, in part, to tools like the Emerging Risk Radar (page 42), where emerging and rapidly developing risks are identified and assessed. This proactive approach ensures that SCOR stays on the cutting edge of risk management, enabling the Group to extend relevant services and protection solutions to our insurance clients and support risk prevention efforts. While these risks can themselves create business risks in the case of overexposure, they are also the raw material of our business as they present opportunities to develop new (re)insurance products that support our clients and contribute to more resilient societies. Nonetheless, the increasingly complex and interconnected risk landscape necessitates a holistic approach, analyzing possible scenarios from all angles and perspectives. For example, sustainability risks can interact with SCOR’s risk profile, creating challenges for profitability and reputation while at the same time providing opportunities for our P&C and L&H teams to develop products that support the transition to a cleaner, greener economy. By closely monitoring existing and emerging risks, identifying business risks and opportunities, and adhering to established best practices and risk frameworks, SCOR reinforces robust risk management within our business and the broader (re)insurance ecosystem. . MANAGING BUSINESS RISKS IN AN EVOLVING RISK LANDSCAPE SCOR leverages advanced insights for better risk management As a global reinsurer, SCOR has a unique perspective on risks. Many times, when we discuss risks, we’re talking about those that our clients and societies face and that our (re)insurance solutions protect against. However, as with any company, it is crucial that we also closely monitor the business risks the Group itself faces. 40 ACTIVITY REPORT 2024
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