Question 1:

Define the following terms:
(a) Whole life assurance
(b) Immediate annuity
(c) Market Liquidity Risk
(d) With-profit contracts
(e) Business Risk
(f) Defined Contribution scheme
(g) Cost and charges
(h) Withdrawal Risk
(i) Operational Risk
(j) Reinsurance Risk
(k) Volume of business risks
(l) Quota share reinsurance
(m)Surplus reinsurance
(n) Risk excess of loss reinsurance (Risk XL)
(o) Aggregate excess of loss reinsurance

Question 2:

a) Discuss the concept of risk from the perspective of a financial institution. Your answer should include how such an institution would take risk into account as part of its management processes.

b) Outline the actuarial activities a financial institution will need to undertake in order to assess, quantify, manage and monitor the risks inherent in its business.

Question 3:

Discuss the different risks that are present in a pension scheme.

Question 4:

(a) Draw the risk management control cycle labeling each stage clearly.

(b) Describe each of the stages that you have mentioned in (a).

Question 5

(a) Discuss the task completed at each stage of the Actuarial Control Cycle.