CAS Exam 6C Spring 2018, Question 20

Study guide: Exam 6C

Part a (0.5 points)

Contrast the forecast period for the DCAT and for the Own Risk and Solvency Assessment (ORSA).

Part b (0.5 points)

Contrast the capital requirement for operational risk in the ORSA and in the MCT.

Part c (0.5 points)

Explain how an insurance company can use stress testing to set its internal capital target.

Answer this question and see the worked solution

Concepts tested

• ORSA
• FCT
• Stress Testing
• Internal Target Capital Ratio
• Operational Risk Margin

More questions from this set

• CAS Exam 6C Spring 2018, Question 19
• CAS Exam 6C Spring 2018, Question 21