Chapter 2 Flashcards
What are the two types of director
Executive and non-executive
What is an executive director
Works full-time in a company
Given management responsibility for running parts of the business
Usually a CEO or managing director
What is a non-executive director
Works part time
Chosen for their expertise
Attend board meetings
What are the five main responsibilities for the board
- Regulation of the executive directors and other members to uphold shareholder interest
- Approve the report and accounts
- Selecting and appraising the CEO
- Overseeing risk management process
- Ensuring companies integrity and principles are uphelled
What is the link between the board and the management company
The CEO or managing director
What is a chief actuary
Statutory appointment for life insurance. Because we both employed for life and non life business. They are responsible for calculating claim reserves and pricing
What are the four management actions
Planning, organising, leading, controlling
What is the open door management style
Managers are approachable by staff at all times
What is the autocratic management style
Control and power rests with a single individual usually the chief executive
What is a paternalistic management style
The company looks after its employees in a family way and employees respect organisations management. This is sometimes perceived as to be interfering
What is the Democratic/consultative management style
Decisions are taken with prior reference to his many staff members as possible
What is a chaotic/laissez-faire management style
The Manager is a mentor and any employees are allowed at their own ideas and creativity flourish
Who would be responsible for this:
Economic capital model to assist in determining the capital to be held by the company
Finance director
Who would be responsible for this
Stress and scenario testing to assist in a determination the amount of extreme with the company may be subject to
Finance director
Who would be responsible for this
Proposals to the board on a form of capital
Finance director
Who would be responsible for this
Preparation of a statutory accounts of a company for approval for the board and shareholders
Finance director
Who would be responsible for this
Preparation of financial information required by the FCA
Finance director
Who would be responsible for this
Management of investment portfolio
Finance director
Who would be responsible for this
Management of debt, cash flow, liquidity, and Treasury matters
Finance director
Who would be responsible for this
Technical pricing up a new and existing products
Chief actuary
Who would be responsible for this
Calculation of claim reserves
Chief actuary
Who would be responsible for this
Calculation of risk based capital requirements
Chief actuary
Who would be responsible for this
Assessment of investment risk of funds supporting technical reserves plus modelling
Chief actuary
What are the four management actions
Planning, leading, organisation, controlling
What are the three business components
Material resources, financial resources, human resources
What are the four key new skills required of a manager
- Earning the respect of team members and colleagues
- Focusing on customers
- Multitasking
- Mobility and global outlook
- New management concepts
What are the characteristics of effective internal communication (in exam)
Accuracy, clarity, relevant, reliability, credibility and timeliness
What are the benefits of efficient internal communication
- Brings about change in a culture and structure of the business more quickly
- Encourage staff to be cooperative and innovative
- Insures that all relevant staff a helpful to make corporate objectives
Under Dr. John Adair what are the three things under action centred leadership
- The task- The primary need to get the job done
- The team - we need to build a cohesive unified team
- Individual - where individual needs need to be met otherwise people can become frustrated
Under Dr John Adair action centred leadership what do the tasks need
Team goals and objectives Ensuring appropriate resources are available Developing work plans and define tasks Allocate the work and resources Control the work rate and quality
Dr. John Adair the action centred leadership what does a team needs
Set an agree standards and maintain discipline
Builds and maintains team spirit and morale
Encourages communication and motivation
Appoints sub leaders
Train and develop the team
Under Dr. John Adair action said leadership what does an individual need
Agreed individual objectives Attend personal problems Gives praise and reward to individuals Train in develop Recognise the news individual abilities
What are the six appropriate management styles
- Open door
- Autocratic
- Paternalistic
- Materialistic/hierarchal
- Democratic/consultative
- Chaotic/laisser faire
