What is Pillar 2? Some find this a difficult question to answer. Essentially it consists of most of the systems and processes that exist within a firm. If Pillar 1 deals with the financial side of things, and Pillar 3 the reporting, then Pillar 2 is everything in between- corporate governance, governance cultures, risk management and frameworks, the ORSA and embedding these into the fabric of the business.
People have been focusing on risk management in the risk function not in the wider business which means they are underestimating the real challenges. Risk managers should be totally embedded within the business. They should be interacting frequently with front line underwriters, investment managers, strategic teams and informing the Board and other decision makers about the risks they are taking and how they are being managed.
These are complex issues to deal with and doing so in the time available won't be easy- there are only 24 months to go to be ready. We can help by cutting through these complexities. KPMG brings global expertise to businesses that can benefit from our 'hands on' approach to solving these problems.