CAS Exam 7 Spring 2012, Question 22
Study guide: Exam 9
An insurance company is planning to upgrade its current claims system. The project is expected to take several months, during which time the claims system will be periodically offline. In addition, much of the design and installation of the new system will be outsourced to a third party.
Part a (0.5 points)
Describe what is meant by "operational risk."
Part b (1.5 points)
Identify two potential sources of operational risk this project entails and suggest a way to mitigate each one.
Answer this question and see the worked solution