Exam DISC-RM Practice Question 22
Study guide: Exam DISC-RM
The CAS's 2003 overview of enterprise risk management splits risk measures into solvency-related measures, which concentrate on the adverse tail, and performance-related measures, which concentrate on volatility near the mean. An insurance regulator wants a measure of how likely an insurer is to exhaust its capital. Which measure is designed for that concern?
- A) The standard deviation of annual earnings
- B) The semi-variance of annual earnings below plan
- C) The coefficient of variation of annual premium
- D) The probability of ruin over the coming year
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