2009-10 - Aditya Birla Nuvo, Ltd

BIRLA SUN LIFE INSURANCE COMPANY LIMITED
a) Reviewing and assessing the integrity and adequacy of the risk management function;
b) Overseeing the establishment and implementation of the risk management framework;
c) Ensuring that major business risks are identified and managed appropriately;
d) Reviewing and approving the annual Risk Management Plan; and
e) Reviewing the operations of the risk management function and advising the risk management
function in terms of critical projects to be undertaken.
III.3.A. Composition
The composition of the Risk Management Committee as on 31 st March 2010 is given in Table 11:
Name of the Committee Member Designation Status
Mr. Ajay Srinivasan Managing Director Member
Mr. Gian P. Gupta Non-Executive & Independent Director Member
Mr. Venkatesh S. Mysore Non-Executive Director Member
Table 11
The Company Secretary acts as the Secretary to the Committee.
III.3.B. Meetings and attendance
During FY 2009-10, the Risk Management Committee met three times viz:
i) June 30, 2009;
ii) November 12, 2009; and
iii) March 11, 2010.
The attendance of the Risk Management Committee members at the Risk Management Committee
meetings during FY 2009-10 is given in Table 12:
Name of the Committee Member
No. of Risk Management Committee meetings
during FY 2009-10
Held
Attended
Mr. Ajay Srinivasan 03 03
Mr. Gian P. Gupta 03 03
Mr. Venkatesh S. Mysore 03 03
Table 12
III.4. INVESTMENT COMMITTEE
Pursuant to Section 292 of the Companies Act 1956, the Board has the power to invest the funds of
the Company and delegate the same to any Committee or to any officials of the Company on any
such conditions as may be prescribed by the Board. The Company already had an Investment
Committee with pre-defined objectives and a comprehensive charter. Further, as per IRDA CG
Guidelines, dated 05 th August 2009, constitution of “Investment Committee” is mandatory for
insurance companies. However, to bring parity with the provisions of the IRDA CG Guidelines,
few changes were made in the said charter and approved by the Board at its meeting held on
November 10, 2009.
The role of Investment Committee is to set policy framework for Investment and ensuring to
safeguard the interest of Shareholders and Policyholders Funds. Investment committee ensures
that all investment activities are conducted as per the framework defined by IRDA and Board.
18