Section 2 - Professionalism, Judgement and documentation

Question 1

Chap 2 - What are the 8 key considerations in the Actuarial work?

Answer 1

1 Acquire adequate knowledge of the circumstances of the assignment
2 Obtain sufficient and reliable data
3 Select appropriate assumptions and methodology
4 Understand the requirements regarding the use of other person’s work
5 Perform calculation and examine the reasonableness of their result
6 Formulate opinion and advice
7 Maintain sufficient documentation
8 Prepare reports and all other communication.

*** each of these activities involves professional judgment

Question 2

Chap 9 - What is a reasonable judgment based on Canadian standards

Answer 2

1. Spirit and intend of the standards
2. Precepts of ethical and professional conduct intended to guide the conduct of the actuary
3. common sense
4. constraints on time and ressources

Question 3

What are the 4 requirements of a model

Answer 3

1. Specification
2. Assumptions
3. Data (garbage in garbage out)
4. Methodologies

Question 4

What are the 8 work activities of actuaries ?

Answer 4

1. Acquire adequate knowledge of the assignment
2. Obtain sufficient and reliable data
3. Select appropriate assumptions and methodology
4. Understand the requirements regarding the use of other person’s work
5. Perform calculation and examine the reasonableness of their result
6. Formulate opinion and advice
7. Maintain sufficient documentation
8. Prepare reports and all other documentation and communication

Question 5

What is model gouvernance

Answer 5

Set of procedure and organizational structure designed so that intended users can place their confidence in the results of the model

Question 6

What is a model risk

Answer 6

A risk that, due to deficiency in the model or its use will draw an incorrect conclusion from those results