We helped Lloyd’s Managing Agents to prepare and submit a Data Audit report in line with the FSA requirements.
The primary purpose of the data audit report was:
To demonstrate that the data management policies comply with the tests and standards set out in the Solvency II Directive, and
To demonstrate how the data used in the internal model meets the Solvency II requirements on data quality (complete, accurate, appropriate and timely), and how risks are considered and mitigated.
The key elements of our risk based audit approach were as follows:
Follow the Model Audit Programme provided by Lloyds ‘Data Audit Report Guidance’,
Test key controls to assess their operational effectiveness and ensure that overall data risks are mitigated,
Meetings with the key data providers of the Internal Model to confirm our understanding of the key elements and the process,
Report findings and make recommendations, and
Identify improvement opportunities. These are matters which are not related to control issues, but represent areas for improvement which can add value to the business and aid the achievement of business objectives.
Additionally, we worked with the Management to prepare a detailed plan to address the issues and implement the improvements.
Key deliverables:
Data Audit Report,
Separate report to the Management, detailing the issues and gaps with comprehensive recommendations for improvement to fully meet Solvency II requirements.