F71CA - Actuarial Risk Management 1

Course leader(s):

Andrew David Stott (Edinburgh, September)

Aims

The aims of this course (and of Actuarial Risk Management 2) are:

To provide students with a thorough grounding in the strategic concepts required to manage the business activities of financial institutions and programmes
To provide students with an understanding of the various types of risk faced and the processes used to manage those risks
To teach students to make use of those processes in order to formulate, justify and present plausible and appropriate solutions to business problems

Syllabus

1. Professionalism (1.1 * The roles and statutory roles actuaries can play, 1.2 * The professionalism framework of the Actuarial Profession and the Board for Actuarial Standards, 1.3 * The factors and issues to be taken into account when doing a professional job, 1.4 * The components of and application of the Actuarial Control Cycle)

2. Stakeholders and their needs (2.1 * The variety of stakeholders and their needs, 2.2 * Products, schemes, contracts and other arrangements that can provide benefits on contingent events which meet the needs of clients and other stakeholders)

3. The environment (3.1 * The risk environment, the identification of risks, the classification of risks and related concepts, 3.2 * The principles and aims/rationale of prudential and market conduct regulatory regimes, 3.3 * The impact of the external environment, 3.4 * The investment environment; its behaviour and its contracts, 3.5 * The impact of capital requirements and their measures)

4. Specifying the commercial problem (4.1 * The factors to be considered in the design of products, schemes, contracts or other arrangements that provide benefits on contingent events, 4.2 * Project management and the use of actuarial techniques in the assessment of capital investment projects and cost-benefit analyses, 4.3 * How risks are taken into account in project management, 4.4 * What data is required and how it should be handled, 4.5 * The issues surrounding the management of risk, 4.6 * Methods of measuring risk, 4.7 * Risk management tools)

5. Principal terms (5.1 * The principal terms used in financial services and risk management)

Learning outcomes

By the end of the course, students should be able to do the following:

describe how to behave and present oneself professionally in a commercial environment taking relevant factors and issues into account
apply the Actuarial Control Cycle in a practical commercial situation
describe all stakeholder types and take appropriate account of their requirements when giving actuarial advice
describe the risk, regulatory, external and investment environments in which a company is operating and the implications of those environments on company actions
design contracts and projects with associated management in a manner that delivers success
describe sensible approaches for manipulating data to render it most useful
apply a sensible approach to risk management
communicate logic and concepts appropriately for an audience of a particular type

Further details

Curriculum explorer: Click here

SCQF Level: 11

Credits: 15