WorksheetsORSA & ERM
Total questions: 5
Worksheet time: 4mins
Which statement is correct?
Stress test scenario is mostly focused on the high probability event
Sensitivity analysis usually conducts on multiple assumption at the same time
Executive mostly utilize the scenario analysis to see the financial outcome if the scenario become true
Reverse stress test is the worst business scenario which was happened for last 5Y
Which one is incorrect ?
Based on the own risk assessment, operational risk can be quantified easily such as 1% of gross written premium
Volatility of market value is major concern for the market risk
Liquidity risk is not significant for unit link policy
Asset Liability management is very important for life insurance company to assess the interest rate risk
Which one is not true of risk management ?
Risk management can enhance the likelihood to achieve the company strategy
Board of director must be responsible to Enterprise risk management framework such as approve risk management policy
Risk, business strategy and capital must be linked in order to gain the benefit of risk management framework
ORSA is mainly focused on the qualitative assessment because quantitative assessment will cost burden to insurance company especially small size
Which one is the most correct regarding to 3-line of defense ?
Underwriting function is not responsible for risk control at all because it works on the first line or risk-taking Business Unit
Actuarial function can be positioned as first and second line such as pricing actuary will work as 1st line, while corporate actuary will work as 2nd line
Compliant and internal audit are interchangeable areas which all of them working on 3rd line
Investment team will work as 2nd line because their main function is needed to management and monitor financial risk
Per Thai RBC regime, a company have TCA = 200 million and TCR = 100 million which statement is appropriate if asset effective duration = 8.3 year and liability effective duration = 12.5 year ?
Company CAR = 50% and when interest rate goes up CAR ratio would likely higher than 50% because lower TCA is dominated
Company CAR = 200% and when interest rate goes up CAR ratio would likely lower than 200% because lower TCA is dominated
Company CAR = 200% and when interest rate goes up CAR ratio would likely higher than 200% because lower TCR is dominated
Company CAR = 50% and when interest rate goes up CAR ratio would likely lower than 50% because lower TCR is dominated
