Professional Documents
Culture Documents
The Professional in The Commercial Environment: Anthony Asher 2015
The Professional in The Commercial Environment: Anthony Asher 2015
Agenda
Tests of professionalism
Technical standards
The general environment
The facts have changed ...
Managing the changes
Activity
Preparation:
Attendance:
Reading:
Details
Hours
UAM 3 and 5
Institutes code of conduct
Three readings from
references in Chapter 5
Exercises
3
1
From UAM
Prepare presentation
1
1
10
TOTAL
TESTS OF PROFESSIONALISM
Apply the tests of professionalism
a)
Identify the principles of professionalism and relate them to the actuarial profession
b)
Outline the main features and functions of the professional association, its code of conduct,
professional standards and major guidance notes
c)
d)
Demonstrate an understanding of the need for, and application of, materiality and peer review
e)
Identify situations where actuarial expertise may be insufficient, and analyse what consequent
actions might then be appropriate
Part II syllabus
OVERALL APPROACH
Discuss and Apply an Actuarial Control Cycle in a Variety of Practical Commercial Situations
a) Identify the elements of the Control Cycle and how the elements interrelate in an actuarial context
b) Recognise the various stakeholders involved in a variety of situations involving medium and longterm commercial decisions and demonstrate how the use of the Control Cycle can add value in
resolving issues between the stakeholders
c) Demonstrate how the Control Cycle can be applied in a variety of practical commercial situations
Part II syllabus
Errors
Thinking is Bad: Implications of Human
Error Research for Spreadsheet Research
and Practice Raymond R. Panko
http://arxiv.org/ftp/arxiv/papers/0801/0801.3114.pdf
Suggestions:
Need to spend over 30% of the
time testing best to be
continuous
Reduce the memory load by
using short formula and
modular structure.
Do not rush!
+ Take time to consider and
document model assumptions,
testing if necessary with others
TECHNICAL STANDARDS
The UK actuarial profession has issued generic technical standards for reporting, modelling and data.
http://www.actuaries.org.uk/regulation/pages/technical-actuarial-standards-tass-online-learning-materials
of the actuarial models used, the material underlying assumptions, with an account of their
calibration and any risks margins incorporated
for the selection and grouping of the data used, with an account of the checks made
Read Technical Actuarial Standard D: DATA
http://www.frc.org.uk/getattachment/1d08e3b5-00bc-4793-b457-284162f002af/TAS-D-Data-version-1-Nov-09.aspx
Discussion topic 2
Are the UK technical standards important?
Are they well written and helpful?
GENERAL ENVIRONMENT
Relate the main features within the general environment to medium and long term commercial
decisions
a)
Interpret how the present economic conditions and the social, demographic, and economic trends
within a community can affect medium and long-term commercial decisions
b)
c)
Part II syllabus
Higher incomes
Generous pensions &
tax concessions
Technical change
Age
discrimination
Earlier retirement
Fewer births
Mothers in workplace
Increased crime
Family
breakdown
Population growth
Mothers in workplace?
Environmental
degradation
Fewer births
Increased crime
Family
breakdown
Failed states
11
Technical
and social
changes
http://www.hamiltonproject.org/multimedia/charts/cost_of_computin
g_power_equal_to_an_ipad2/
http://www.people-press.org/2009/12/21/current-decade-rates-as-worstin-50-years/
12
http://democracyranking.org/wordpress/?page_id=738#
13
http://democracyranking.org/wordpress/?page_id=831#prettyPhoto
14
http://democracyranking.org/wordpress/?page_id=738#
15
http://www.fandc.com/FundNets_FileLibrary/f
ile/uk_it_quarterly_EAT.pdf (no longer
available) &
16
http://www.econbrowser.com/archives/2012/08/
how_long_can_ja.html
17
18
19
19
Source: UN. World Water Development Report 4. World Water Assessment Programme (WWAP), March 2012.
21
21
Jeremy Grantham (2011) Time to wake up: Days of abundant resources and falling prices are over forever
http://www.theoildrum.com/node/7853
22
Jeremy Grantham (2011) Time to wake up: Days of abundant resources and falling prices are over forever
http://www.theoildrum.com/node/7853
23
http://www.bp.com/content/dam/bp/pdf/Energy-economics/statistical-review2014/BP-statistical-review-of-world-energy-2014-full-report.pdf
24
Discussion Topic 2
What are likely to be the most important changes to the context for:
25
The context
Government policy
Social attitudes
Technological changes
Internet and automation may reduce costs and offer new means of marketing or new products
(ATM)
Medical advances and longevity
New sources of energy, climate control
Natural events
Competition
Companys
core
capabilities
Provides products
and services
Market
needs
Pays for product
Response includes:
Use ACC to avoid or transfer the risks or increase capital to absorb them
Maintain integrity and good relationships with government and the community
27
Discussion Topic 3
TYPES OF
KNOWLEDGE
Known
Unknown
Aware
Explicit knowledge
Uncertainty
Unaware
Tacit knowledge
Ignorance
28