IAA Risk Book: Governance of Models

By Trevor Howes, Godfrey Perrott, Sheldon Selby and David Sherwood · International Actuarial Association · 2023

Study guide: Exam 6I

A chapter of the IAA Risk Book on model governance, approved by the IAA's Insurance Regulation Committee (version 1.2, May 2023). It explores the meaning and function of model governance as it relates to insurance enterprises, and describes the fundamental concepts behind, and main components of, effective model risk management and model governance: a governance framework, a model inventory and model validation.

On the syllabus

• Exam 6I — objectives B3, E1, E4; the chapter (May 2023).

Introducing the IAA Risk Book

1 Introduction

• 1.1 Aims of Chapter
• 1.2 Relevance to Actuaries

2 Executive Summary

3 Definitions

4 Background

5 Introduction to Models and Model Risk

6 Model Governance Framework

7 Model Inventory

8 Model Validation

9 Bibliography

Related readings

• IAA Risk Book - Professional Standards (Insurance Regulation Committee - 2023) — another chapter of the IAA Risk Book, assigned with this one for the same objectives
• IAA Risk Book - Actuarial Function (IAA - 2023) — another chapter of the IAA Risk Book, assigned with this one for the same objectives

Sources

• IAA Risk Book: Governance of Models (International Actuarial Association, May 2023) — the document: title page (May 2023), version table (version 1.2, May 2023, authors), table of contents and bookmarks, and section 1 for the lead (sha256 5733cdc6deb497bf…); the file name says 2023-04, the document itself May 2023
• CAS Exam 6I Content Outline, Fall 2026 — the citation ("IAA Risk Book", Governance of Models, May 2023) and the assignment (objectives B3, E1, E4)