CORPORATE GOVERNANCE

The Company is controlled through its Board of Directors. The Board’s main roles are to provide entrepreneurial leadership, approve strategic policies, plans and objectives and ensure that the necessary financial and other resources are made available to meet those objectives. The Board has formed two sub-committees, the Executive Committee and the Audit committee. The roles and responsibilities of these committees have been defined by the Board.

The Legal & Compliance Department is guided in executing its works by the Anti-Money Laundering Manual. The AML Manual contains policies, procedures and guidelines adopted by Solidarity, to ensure compliance and adherence to the requirements of the Anti-Money Laundering Act & Legislation as well as the Financial Crime Module (“FC module”) of the Insurance Rulebook (Volume 3) issued by the Central Bank of Bahrain (CBB), with relevant updates being issued from time to time.
The Compliance Department exists as a mechanism for ensuring that the sales standards of Solidarity Company are met. These standards are derived from the internationally accepted principle of best advice and the regulatory requirements of the financial supervisory bodies in the territories in which Solidarity will write business. It is anticipated that, with time, external regulation will increase and that, as it does, Solidarity’s standards will adapt to accommodate the new requirements.
The Internal Audit department is an independent appraisal activity established within Solidarity to examine and evaluate its activities. The objectives of internal auditing are to assist members of the organization in the effective discharge of their responsibilities by furnishing them with analysis, appraisals, recommendations, counsel, and information concerning the activities reviewed and by promoting effective control at reasonable cost.

The authority and responsibilities of the Department are established by the Audit Committee on behalf of the Board of Directors. Internal audit staffs are authorized, within agreed plan and mandate, to review all areas of the Company and to have full, free, and unrestricted access to all Company activities, records, property, and personnel.

Good corporate governance requires ensuring that the board of directors and the management have established appropriate organizational processes and corporate controls to measure and managing risk across the business. All businesses in a free market are exposed to risks which, while existing from inception, are becoming increasingly complex in so far as source of risk is not only getting wider but also changing rapidly. The Group risk management function aims to establish “a comprehensive and integrated risk management framework for managing company wide risk in order to maximise the company’s value” and to benefit the business in terms of improved performance, increased organizational effectiveness and better risk reporting.