---
title: "[OR] [MLRe] [E2] [C6] Confirming Risk Appetite of OR Plan Phase for Malaysian Life Reinsurance Group Berhad"
description: How MLRe confirms its Board-owned risk appetite for operational disruption, with an illustrative appetite statement and indicators.
image: https://blog.bcm-institute.org/hubfs/MLRE%20Graphic%20Folder/MLRE%20E2%20Morepost/%5BOR%5D%20%5BMLRE%5D%20%5BE2%5D%20%5BP1%5D%20%5BS4%5D%20%5BC6%5D%20Confirming%20Risk%20Appetite.jpg
---
[](http://www.bcm-institute.org/)
- [Home](https://www.bcm-institute.org/)
- [About Us](https://www.bcm-institute.org/about-us-3/)
- [A President’s Perspective](https://www.bcm-institute.org/about-us/a-presidents-perspective/)
- [Our History](https://www.bcm-institute.org/about-us/our-history/)
- [Our Advisory Council](https://www.bcm-institute.org/about-us/our-advisory-council/)
- [Customers’ Testimonials](https://www.bcm-institute.org/about-us/customers-testimonials/)
- [Credential Verification](https://www.bcm-institute.org/about-us/credential-verification/)
- [Courses](https://blog.bcm-institute.org/blog/course-fees-for-blended-learning-courses-master-catalog)
- [ISO 22301 Business Continuity Management System Audit](https://blog.bcm-institute.org/audit/business-continuity-management-audit-courses)
- [ISO 22301 Business Continuity Management](https://blog.bcm-institute.org/bcm/business-continuity-management-courses)
- [Crisis Communication](https://blog.bcm-institute.org/crisis-communication/crisis-communication-courses)
- [Crisis Management](https://blog.bcm-institute.org/en/crisis-management/courses)
- [IT Disaster Recovery](https://blog.bcm-institute.org/it-disaster-recovery/courses)
- [Operational Resilience](https://blog.bcm-institute.org/operational-resilience/courses)
- [Operational Resilience Audit](https://blog.bcm-institute.org/operational-resilience-audit/courses)
- [Certification](https://blog.bcm-institute.org/certification/types-of-certifications-offered)
- [ISO 22301 BCMS Audit Certification](https://blog.bcm-institute.org/certification/business-continuity-management-audit-certification)
- [ISO22301 Business Continuity Management Certification](https://blog.bcm-institute.org/bcm/business-continuity-management-certification)
- [Crisis Communication Certification](https://blog.bcm-institute.org/crisis-communication/crisis-communication-certification)
- [Crisis Management Certification](https://blog.bcm-institute.org/en/crisis-management/crisis-management-certification)
- [IT Disaster Recovery Planning Certification](https://blog.bcm-institute.org/it-disaster-recovery/it-disaster-recovery-certification)
- [Operational Resilience Certification](https://blog.bcm-institute.org/operational-resilience/operational-resilience-certification)
- [Operational Resilience Audit Certification](https://blog.bcm-institute.org/operational-resilience-audit)
- [Seminars](https://blog.bcm-institute.org/meet-the-expert/mte-webinar-mainpage)
- [Store](https://www.bcm-institute.org/store-2/)
- [Contact Us](http://www.bcm-institute.org/about-us/contact-us/)
-
-
###### Building Organisational Resilience: An Operational Resilience Guide for Malaysian Life Reinsurance
![\[BB\] \[Ins\] Storm-Protected Smart Home](https://blog.bcm-institute.org/hs-fs/hubfs/BB%20Insurance/BB%20Insurance%20V2%202026/%5BBB%5D%20%5BIns%5D%20Storm-Protected%20Smart%20Home.png?width=1677&height=938&name=%5BBB%5D%20%5BIns%5D%20Storm-Protected%20Smart%20Home.png "[BB] [Ins] Storm-Protected Smart Home")
# \[OR\] \[MLRe\] \[E2\] \[C6\] Confirming Risk Appetite of OR Plan Phase for Malaysian Life Reinsurance Group Berhad
[![\[OR\] \[MLRE\] \[Full Banner\] Building Organisational Resilience An Operational Resilience Guide for Malaysian Life Reinsurance ](https://no-cache.hubspot.com/cta/default/3893111/6898dbc1-274c-4300-9b8e-97cdd96a7a30.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/6898dbc1-274c-4300-9b8e-97cdd96a7a30)Strategy only works if it operates within limits the Board has agreed. This chapter covers Stage 4 of the Plan phase: **Confirm Risk Appetite**, as it applies to Malaysian Life Reinsurance Group Berhad (MLRe).[![\[E2\] \[C6\] \[P1\] \[S4\] Confirming Risk Appetite](https://no-cache.hubspot.com/cta/default/3893111/36bc08e8-54f0-4b0b-b402-6d96c72dc3bb.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/36bc08e8-54f0-4b0b-b402-6d96c72dc3bb)[![\[Logo\] \[OR\] Certification Transparent](https://no-cache.hubspot.com/cta/default/3893111/09ce1ea0-4d44-4deb-867f-2e2b1b867768.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/09ce1ea0-4d44-4deb-867f-2e2b1b867768)
[Dr Goh Moh Heng](https://blog.bcm-institute.org/or-v2/author/dr-goh-moh-heng) Nov 13, 2026
### [![x \[OR\] \[MLRE\] Legal Disclaimer Banner](https://no-cache.hubspot.com/cta/default/3893111/141492be-2bd8-434d-a664-dfdf2c7480ba.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/141492be-2bd8-434d-a664-dfdf2c7480ba)[![\[E2\] \[C6\] \[P1\] \[S4\] Confirming Risk Appetite](https://no-cache.hubspot.com/cta/default/3893111/36bc08e8-54f0-4b0b-b402-6d96c72dc3bb.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/36bc08e8-54f0-4b0b-b402-6d96c72dc3bb)
### Confirming Risk Appetite
[![\[OR\] \[MLRE\] \[E2\] \[C6\] Confirming Risk Appetite](https://no-cache.hubspot.com/cta/default/3893111/8ad0c776-0587-49d2-9e57-9815dcf81fe2.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/8ad0c776-0587-49d2-9e57-9815dcf81fe2)Strategy only works if it operates within limits the Board has agreed. This chapter covers Stage 4 of the Plan phase: **Confirm Risk Appetite**, as it applies to Malaysian Life Reinsurance Group Berhad (MLRe).
## What is Risk Appetite?
Risk appetite is the amount and type of risk an organisation is willing to accept to achieve its objectives. Related terms are often confused:
- **Risk appetite:** the broad level of risk MLRe is willing to take.
- **Risk tolerance:** the acceptable variation around that appetite for a specific risk, usually in measurable terms.
- **Risk threshold:** the point at which an escalation or action is triggered.
MLRe already has an enterprise risk appetite that covers insurance, investment and capital risks. Operational resilience needs a statement within that framework that speaks specifically to service disruption.
## Treat Risk Appetite as Strategic
Risk appetite is a strategic decision, owned by the Board, not an administrative exercise. It tells management how much disruption the organisation will accept, and so how much to invest in prevention, response and recovery. Without it, resilience spending is either guesswork or driven by the last incident.
## How to Confirm Risk Appetite
### 1. Assess risks
Identify threats and vulnerabilities that could disrupt MLRe's operations, internal and external: cyber-attack, failure of cloud or outsourced IT providers, loss of key staff, flooding or power failure affecting the Kuala Lumpur office, custodian or counterparty failure, and regulatory change. Use the risk assessment from Chapter 4 as the starting point.
### 2. Quantify risk tolerance
For each disruption type, estimate likelihood and impact and decide how much exposure is acceptable. Impact should be expressed in terms that matter to MLRe: delay in claims recoveries to cedants, missed regulatory submissions, inability to quote or renew treaties, financial loss, and reputational harm. Link these to the risk rating scales MLRe already uses so the numbers are comparable with other risks.
### 3. Write the risk appetite statement
Document the tolerance for operational disruption, aligned with the overall risk appetite framework. An illustrative statement for MLRe:
> *"MLRe has a low appetite for disruption to services that affect cedants' ability to rely on claims recoveries, and no appetite for failure to meet regulatory reporting obligations. MLRe accepts that some disruption to non-critical services may occur, provided critical business services remain within their Board-approved impact tolerances."*
Supporting this, a short table can state appetite by category:
| **Category** | **Appetite** | **Illustrative indicator** |
| --- | --- | --- |
| **Claims recovery continuity** | **Low** | **Days of delay beyond treaty terms** |
| **Regulatory reporting** | **Very low** | **Missed or late BNM submissions** |
| **Treaty underwriting and renewal** | **Low** | **Hours without quoting capability in renewal season** |
| **Data loss and confidentiality** | **Very low** | **Cedant data incidents** |
| **Non-critical internal processes** | **Moderate** | **Time to restore** |
The categories and indicators are examples for discussion; the Board sets the final positions.
## Practical Tips
- Present options to the Board with the cost of each level of appetite, so the decision is informed.
- Cascade the statement into the Risk Management Committee's reporting.
- Review at least annually, and after any significant incident or change in the business.
## [![\[Banner\] \[Summing\] \[OR\] \[E2\] \[C6\] Confirming Risk Appetite](https://no-cache.hubspot.com/cta/default/3893111/c13a1d8c-3234-4a1a-a30b-393e264dd957.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/c13a1d8c-3234-4a1a-a30b-393e264dd957)Summary
A confirmed risk appetite gives MLRe's resilience work a boundary and a rationale. It is the reference point for the impact tolerances set in Chapter 11. Chapter 7 puts governance in place so that appetite is monitored and enforced.
[![\[OR\] \[MLRE\] \[34 Banner\] Building Organisational Resilience An Operational Resilience Guide for Malaysian Life Reinsurance ](https://no-cache.hubspot.com/cta/default/3893111/cf0d3512-4dc7-4e6e-96a9-74e9c30a002c.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/cf0d3512-4dc7-4e6e-96a9-74e9c30a002c)
| **eBook 2: Implementing Operational Resilience for Malaysian Life Reinsurance** | | | |
| --- | --- | --- | --- |
| **C1** | **C2** | **C8** | **C14** |
| [](https://cta-redirect.hubspot.com/cta/redirect/3893111/17a2eb25-208f-4500-9dea-4e79a6d9f06a) | [![\[OR\] \[MLRE\] \[E2\] \[C2\] Five Stages of the "Plan" Phase](https://no-cache.hubspot.com/cta/default/3893111/132af509-6e86-4d7a-8997-70e40b8a3037.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/132af509-6e86-4d7a-8997-70e40b8a3037) | [![\[OR\] \[MLRE\] \[E2\] \[C8\] Five Stages of the "Implement" Phase](https://no-cache.hubspot.com/cta/default/3893111/f70329aa-1c8f-481a-b4df-ddcce98fab6b.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/f70329aa-1c8f-481a-b4df-ddcce98fab6b) | [![\[OR\] \[MLRE\] \[E2\] \[C14\] Five Stages of the "Sustain" Phase](https://no-cache.hubspot.com/cta/default/3893111/b3074256-e267-4914-96ff-2907cb4185be.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/b3074256-e267-4914-96ff-2907cb4185be) |
| | **"Plan" Phase of the Operational Resilience Planning Methodology** | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | **C2** | **C3** | **C4** | **C5** | **C6** | **C7** |
| [](https://cta-redirect.hubspot.com/cta/redirect/3893111/f2a29754-d200-4bab-9802-6081ca800251) | [![\[OR\] \[MLRE\] \[E2\] \[C2\] Five Stages of the "Plan" Phase](https://no-cache.hubspot.com/cta/default/3893111/132af509-6e86-4d7a-8997-70e40b8a3037.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/132af509-6e86-4d7a-8997-70e40b8a3037) | [![ \[OR\] \[MLRE\] \[E2\] \[C3\] Assessing Capability and Maturity](https://no-cache.hubspot.com/cta/default/3893111/b445f9d4-9dbe-49d4-aa3e-1a009a6bc6bd.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/b445f9d4-9dbe-49d4-aa3e-1a009a6bc6bd) | [![\[OR\] \[MLRE\] \[E2\] \[C4\] Analysing Gaps](https://no-cache.hubspot.com/cta/default/3893111/2c2bf538-4476-4b16-b0f8-f7d66ee6c49c.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/2c2bf538-4476-4b16-b0f8-f7d66ee6c49c) | [![\[OR\] \[MLRE\] \[E2\] \[C5\] Developing Strategy and Roadmap](https://no-cache.hubspot.com/cta/default/3893111/8f92385c-f4e5-48a1-a303-78cff6a23184.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/8f92385c-f4e5-48a1-a303-78cff6a23184) | [![\[OR\] \[MLRE\] \[E2\] \[C6\] Confirming Risk Appetite](https://no-cache.hubspot.com/cta/default/3893111/8ad0c776-0587-49d2-9e57-9815dcf81fe2.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/8ad0c776-0587-49d2-9e57-9815dcf81fe2) | [![\[OR\] \[MLRE\] \[E2\] \[C7\] Developing and Embedding Governance](https://no-cache.hubspot.com/cta/default/3893111/764d9f4c-3159-4d2d-ab05-7d0a7625dd8f.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/764d9f4c-3159-4d2d-ab05-7d0a7625dd8f) |
## **Comments**
---
---
---
---
All rights reserved. Copyright 2026
```json
{
"@context" : "https://schema.org",
"@type" : "BlogPosting",
"author" : {
"@type" : "Person",
"name" : "Dr Goh Moh Heng",
"url" : "https://blog.bcm-institute.org/or-v2/author/dr-goh-moh-heng"
},
"dateModified" : "2026-11-13T01:55:46.959Z",
"datePublished" : "2026-11-13T01:55:37.000Z",
"headline" : "[OR] [MLRe] [E2] [C6] Confirming Risk Appetite of OR Plan Phase for Malaysian Life Reinsurance Group Berhad",
"image" : [ "https://blog.bcm-institute.org/hubfs/MLRE%20Graphic%20Folder/MLRE%20E2%20Morepost/%5BOR%5D%20%5BMLRE%5D%20%5BE2%5D%20%5BP1%5D%20%5BS4%5D%20%5BC6%5D%20Confirming%20Risk%20Appetite.jpg" ],
"mainEntityOfPage" : {
"@id" : "https://blog.bcm-institute.org/or-v2/or-mlre-e2-c6-confirming-risk-appetite-of-or-plan-phase-for-malaysian-life-reinsurance-group-berhad",
"@type" : "WebPage"
},
"publisher" : {
"@type" : "Organization",
"logo" : {
"@type" : "ImageObject",
"url" : "https://blog.bcm-institute.org/hubfs/BCMI%20Logo.png"
},
"name" : "BCMI Pte Ltd"
}
}
```