Effective risk management

Our Risk Management strategy continues to evolve in-line with changing customer needs and expectations, regulatory expectations, organisational changes, business strategies and industry developments.

Risk Management Framework

TAL’s Risk Management Framework (RMF) provides the necessary foundations and organisational arrangements to manage risk across the business. The RMF comprises the totality of systems, structures, policies, processes and people within TAL that identify, measure, evaluate, monitor, report and control internal and external sources of material risks.

TAL adopts a ‘Three Lines of Accountability’ (3LOA) model, providing clarity on roles and responsibilities in the management of risk. Typically, this is described as a Three Lines of Defence model, however, TAL describes this as a 3LOA model to reflect the expectation that our people are accountable for managing risks, not just defending against them. The three lines are:

  • First line of Accountability: Business, all employees;
  • Second line of Accountability: Risk Office (and Appointed Actuary); and
  • Third line of Accountability: Internal Audit.

In TAL’s 2020 financial year, management’s investment in risk professionals across the 3LOA has advanced improvements in the RMF, including improved risk monitoring and reporting and risk awareness across the business.

Non-Financial Condition Report

TAL’s Non-Financial Condition Report (NFCR) focuses on compliance risk and aims to inform the Board on the condition of key elements of the Risk Management Framework as they relate to the management of non-financial risks.

The NFCR provides the TAL Board with an end-to-end view of risk and demonstrates our intent to take a leading industry position by setting high standards in managing non-financial risk across Operations, Technology and Cyber Security, Strategy, and Conduct and Culture.

Modern Slavery

TAL is also committed to ensuring we have effective policies and procedures in place to minimise the risk of modern slavery occurring within our business operations and supply chain. We respect the human rights of our people, our partners, our customers, our suppliers and of the community in which we operate. Our intention is to identify and manage any risks related to human rights across our business and through our supply chain management.