Internal Audit’s role in reviewing the ORSA
Internal Audit’s role in reviewing the ORSA
Most KPMG survey respondents plan to rely on their internal audit or external advisors to perform their independent ORSA review as required of all authorised insurers. We believe internal audit is well positioned to lead the independent review, and offer ideas for structuring the review.
The Own Risk and Solvency Assessment (“ORSA”) has been introduced as part of the Guideline on Enterprise Risk Management (“GL21”) issued by the Hong Kong Insurance Authority (“HKIA”), taking effective from 1 January 2020. All the authorised insurers requires to conduct the ORSA at least annually and to perform regular independent review of the ORSA.
Based upon a survey conducted by KPMG covering over two-thirds of the Hong Kong insurance market, the majority of the participants intend to rely upon Internal Audit or external advisor to perform the inaugural ORSA independent review.
In this publication, we analyse why Internal Audit is well-positioned to lead the ORSA independent review and share KPMG’s views on the common challenges faced by the market in performing such review. It also outlines the scope of the indepdent review that the auditor should focus on and KPMG’s three stage co-sourcing approach to performing the ORSA independent review.
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