F71CB - Actuarial Risk Management 2

Course leader(s):

Andrew David Stott (Edinburgh, January)

Aims

The aims of this course (and of Actuarial Risk Management 1) 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. Solving a commercial problem (1.1 * The requirements and use of a model and how its results should be tested, 1.2 * How model assumptions should be determined, 1.3 * The expenses that should be considered, 1.4 * How costs of providing benefits based on contingent events should be determined, 1.5 * How prices should be set to pay for benefits based on contingent events, 1.6 * The principles, objectives and measures of investment management, 1.7 * The approaches to establishing provisions, 1.8 * The relationship between assets and liabilities)

2. Living with the solution to a commercial problem (2.1 * Approaches to maintaining profitability, 2.2 * How expected results can be projected, 2.3 * How actual results are reported and what systems are required to do this, 2.4 * The issues facing the providers of benefits on contingent events relating to the reporting of risk, 2.5 * The principles of asset management and allocation, 2.6 * The principles of capital management, 2.7 * The management of surplus and the issues surrounding its distribution/retention, 2.8 * The issues that need to be taken into account on insolvency or closure, 2.9 * The issues surrounding the management of options and guarantees)

3. Ongoing monitoring (3.1 * How experience is monitored and models/assumptions revised)

4. Principal terms (4.1 * 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:

design appropriate models and make appropriate recommendations based on their results
discuss the different approaches to investment management
explain why provisions need to be established
choose between approaches for provisioning for different types of liabilities, if necessary taking into account the assets backing them
describe how a company is managed on an ongoing basis, particularly in respect of projecting future results, reporting results and managing assets, capital and any surplus arising
discuss the issues surrounding the management of options and guarantees
explain how actual experience is monitored and taken account of
communicate logic and concepts appropriately for an audience of a particular type

Further details

Curriculum explorer: Click here

SCQF Level: 11

Credits: 15