List of risks in the different sectors

Question 1

General risks in pension schemes

Answer 1

Default of sponsor/provider
Failure by sponsor/provider to pay contributions on time
Takeover of sponsor/provider
Decisions by sponsor/provider to reduce benefits/contributions
Inadequate sponsor by sponsor/provider
Economic mismanagement of funds

Question 2

Risks in Life and General insurance

RISK LIFE DROWN CATS MUn

Answer 2

Reinsurance/ Reputational
Investment/ Reinvestment risk
Systematic risk
Kompetition risk

Liquidity risks
Inflation
Fraud
Expenses

Data
Rates (Mortality, withdrawal, morbidity)
Options
Withdrawals
New business(vol and mix) risk

Credit risk/ failure of third parties
Aggregation of risk
Tax
Selection (Anti Selection, Moral Hazard)

Marketing/ Market risk
Underwriting risk

Question 3

Operational risk

DIRH COFF

Answer 3

Dominance
Reliance on third parties
Internal process failures
Human error
Cyber crime
Outsourcing
Fraud
Failure of plans to recover from external risks

Question 4

Business Risk for insurers BREW COUN

Answer 4

Underwriting risks
Business mix and volumes
Reinsurance
Expenses
Withdrawals
Claims
Options and guarantees
Underwriting risk
New business strain