Chapter 19 - Data Flashcards

1
Q

What is POPIA?

A

Protection of personal information act

Legislation in South Africa to protect the rights of individuals with regard to how organisations can process and maintain personal data.

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2
Q

What are the 8 conditions around which POPIA is structured?

A

(POPIA FSD)

Processing information

Openness

Purpose specification

Information quality

Accountability

Further processing limitation

Security safeguards

Data subject participation

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3
Q

What characterises big data?

A

Very large data sets

Data brought together from several sources

Data which can be analysed very quickly, or even in real time

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4
Q

What is data governance?

A

Overall management of the:

availability
usability
integrity
security

of data used in an organisation.

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5
Q

What guidelines will a data governance policy set out?

A

Specific roles and responsibilities of individuals

How data will be captured, analysed and processed

Privacy and security issues

Controls to maintain data governance standards with regards to data usability, availability, integrity and security

Monitoring adequacy of controls

Ensure legal and regulatory requirement are met

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6
Q

List the main risks to an organisation without proper data governance guidelines?

A

Legal and regulatory non-compliance

Inability to rely on data for decision making

Reputational issues

Incurring additional costs

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7
Q

List the key risks related to data use?

A

Inaccurate or incomplete data

Lack of credibility due to insufficient volume of data

Irrelevant data

Past data is not representative of future experience

Chosen data groups may not be optimal

Format of data is inappropriate

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8
Q

What is algorithmic trading? List the possible advantages and disadvantages thereof.

A

Investment training decisions are automated (no human intervention). Involves buying or selling financial securities electronically to capitalise on price discrepancies to try and make a small profit on each trade.

ADVANTAGES

Increased speed and efficiency of trading

Lower dealing costs on trades

Execution of complex trading strategies

Take advantage of temporary price discrepancies

DISADVANTAGES

Error in algorithm or data used to parameterise the model

Algorithm may not work properly in certain conditions

Trading may be suspended in turbulent conditions before trades can be completed

Possible domino effect on financial markets where algorithmic trading is prevalent

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9
Q

What are some of the main sources of data?

A

Published company accounts

Regulatory reports

Industry data

Data from other countries

National statistics

Internal data

Reinsurer

Industry-wide data collection schemes

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10
Q

What are industry wide data collection schemes? List the possible advantages and disadvantages of using this data?

A

Organisations that collect data from their member offices and then make available summaries of all the data collected. FSCA in South Africa. Continuous Mortality Investigation Bureau in the UK.

ADVANTAGES

Can compare own experience with that of the industry as a whole.

DISADVANTAGES

Heterogeneity within industry hinders ability to compare results.

Less detailed or less flexible data available

External data is often out of date

Data quality will depend on the quality of the systems of all its contributors from the industry

Some organisations do not contribute and so data does not represent the market as a whole

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11
Q

List possible reasons for heterogeneity within an industry-wide data collection scheme?

A

Companies operate in different graphical/socio-economic regions

Policies sold by different companies are different

Sales methods are not identical

Companies will have different internal practices

Nature of data stored by different companies may not be the same

The coding used for the risk factors may vary between organisations

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12
Q

List possible causes of data quality issues.

A

Poor management control of data recording

Poor management control of data verification process

Poor design of data systems

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13
Q

List important sources of internal data for an insurance company?

A

Proposal form

Claims form

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