1. This Code presents the general principles and minimum standards that should be met by insurance and reinsurance companies, including branches of foreign insurance and reinsurance companies, and insurance related service providers to manage their risks.
2. The objective of This Code is to promote high standards of risk management.
3. This Code must be read in conjunction with the Law on Supervision of Cooperative Insurance Companies and its Implementing Regulations, especially articles 12, 20, 21, 24, 37, 42, 46, 47, 49, 60, 61, 62, 68, 72, and 76.

4. The term “Companies” in This Code is intended to include: insurance and reinsurance companies, and insurance related service providers including insurance brokerages, insurance agencies, reinsurance brokerages, and reinsurance agencies. The rest of the terms used in This Code shall have the same meaning as per article one (1) of the Implementing Regulations.
5. Risk management is defined¹ as the process whereby the insurer's management takes action to assess and control the impact of past, present and potential future
   events that could be detrimental to the insurer. These events can impact both the asset and liability sides of the insurer's balance sheet, and the insurer's cash flow.

¹ Source IAIS guidance paper on investment risk management, October 2004

This Code applies to insurance and reinsurance companies, and insurance related service providers including insurance brokerages, insurance agencies, reinsurance brokerages, and reinsurance agencies.

7. Companies must establish appropriate internal controls and procedures to ensure and monitor compliance with This Code, including the compliance of all contracted parties, in particular when there is clear evidence of a breach in the regulation.
8. Companies must maintain adequate records to demonstrate compliance with This Code, including but not limited to the risk strategy and the organizational structure implemented.

9. Non-compliance with the requirements set forth in This Code will be deemed a breach of the Law on Supervision of Cooperative Insurance Companies and its Implementing Regulations and licensing conditions and may subject companies to enforcement action.

10. The risk management requirements are outlined in Parts 2 and 3 of This Code:

    a) Part 2 - General Requirements, which are principle-based.

    b) Part 3 - Risk Management Standards, which stipulate the risk management requirements companies must adhere
    to in order to combat all categories of risk.