in parallel with developing its risk management policy, establishing appropriate tools for analysing, assessing, monitoring and measuring risks and identifying its risk exposures, an insurer should establish and maintain a risk tolerance statement. An insurer’s overall risk tolerance statement should set out the level of risk to which it is willing and able to be exposed, taking into account its financial strength and the nature, scale and complexity of its business and risks, the liquidity and transferability of its business and the physical resources it needs to adequately manage its risks.