Lloyd's - Effective operational processes

Principle – Effective business processes and procedures

The managing agent has effective operational and business processes which enable it to meet its strategic aims.

Standards

The managing agent can demonstrate that –

• key operational and business processes are properly documented.¹
• directors and staff clearly understand all the operational and business processes relevant to their role.²
• operational and business processes make good use of appropriate technology and industry and market standards.
• where possible, key systems are compatible with one another and with counterparties systems.
• outsourced operations and processes are properly controlled.³
• appropriate business continuity plans are in place.⁴
• appropriate credit control and management procedures are in place, especially for the collection of premium.⁵
• appropriate operational targets and key performance indicators are set and performance is reviewed and, where necessary, acted upon.
• adequate records have been kept.
• adequate resources, including human resources, are available to operate, maintain and improve operational and business processes.⁶
• adequate board attention and focus is given to the operational and business processes.