[adsanity_group num_ads=1 num_columns=1 group_ids=234 /]So this is the year that will give us the final Solvency II Level 1 and Level 2 texts – or so we are told. To date, firms have spent the best part of their Solvency II preparation efforts on Pillar I. But with two year to go until full implementation, they should be turning their big guns to the remaining two pillars. And perhaps most importantly the firm’s Own Risk and Solvency Assessment – the ORSA. No two ORSAs should be the same. In the introduction to the public consultation on the ORSA Level 3 text guidelines, published late last year, EIOPA stated, “The guidelines focus on what is to be achieved by the ORSA rather than on how it is to be performed.” The ‘O’ in ORSA stands for ‘Own’, the regulator is keen to point out. Each firm must tailor its ORSA to the size and nature of the organisation. Throughout 2011 regulators and industry leaders continued to bang on about the importance of Pillar II, and the centrality of the ORSA to the entire Solvency II project. It should be at the forefront of Solvency II planning for 2012 and as firms start thinking of implementing the ORSA they must be aware of the challenges that lie ahead.