Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

0.Combined course > Mnemonics > Flashcards

Mnemonics Flashcards

1
Q

dr scc : Factors to consider when setting assumptions

A

Demographic: Age, health, employment status
risk of anti-selection

state of the economy
customer
culture

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

dr scc : Factors to consider when setting assumptions

dr

A

Demographic: Age, health, employment status

risk of anti-selection

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

dr scc : Factors to consider when setting assumptions

scc

A

state of the economy
customer
culture

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

reg cushion : Why financial providers need capital

A

regulatory requirement to demonstrate solvency
expenses of launching a new product or starting a new operation
guarantees can be offered

cashflow timing management
unexpected events cushion, e.g. adverse experience, fines
smooth profit
help demonstrate financial strength/attract new business/ obtain good credit rating
investment freedom to mismatch
opportunities such as mergers and acquisitions
new business strain funding

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

reg cushion : Why financial providers need capital

reg

A

regulatory requirement to demonstrate solvency
expenses of launching a new product or starting a new operation
guarantees can be offered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

reg cushion : Why financial providers need capital

cushion

A

cashflow timing management
unexpected events cushion, e.g. adverse experience, fines
smooth profit
help demonstrate financial strength/attract new business/ obtain good credit rating
investment freedom to mismatch
opportunities such as mergers and acquisitions
new business strain funding

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

system t : Features of assets in general

A 
security risk
yield real nominal, income yield
spread 
term 
expenses 
marketability

tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

pours grid : Reasons for holding money market instruments

A 
protect monetary values
opportunities take advantage of opportunities
uncertain liabilities
recent inflow of cash
short term liabilities

general economic uncertainty
recession
interest rates rising
depreciation of domestic currency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

pours grid : Reasons for holding money market instruments

pours

A 
protect monetary values
opportunities take advantage of opportunities
uncertain liabilities
recent inflow of cash
short term liabilities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

pours grid : Reasons for holding money market instruments

grid

A

general economic uncertainty
recession
interest rates rising
depreciation of domestic currency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

pnefcpb : Causes of risk

A

political e.g. political developments, opposition from third parties, disagreement among sponsors
natural e.g. storm, earthquake
economic e.g. interest rate or currency movements
financial e.g. incorrect cashflow estimates - costs and revenues, problems accessing finance
criminal e.g. fraud
project e.g. insufficiently defined objectives, poor design, over time or over budget
business e.g. competition, loss of key personnel, safety hazards, insolvency of a contractor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

sham fads : Ways to value assets

A

smoothed market value
historic book value
adjusted book value
market value

fair value
arbitrage value
discounted cashflow
stochastic modelling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

sham fads : Ways to value assets

sham

A

smoothed market value
historic book value
adjusted book value
market value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

sham fads : Ways to value assets

fads

A

fair value
arbitrage value
discounted cashflow
stochastic modelling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

price : When information from benefit scheme should be disclosed

A 
payments when payments commence
request on request
intervals at certain interval - more regular than on request
combination of all 
entry at entry into the scheme
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

simmers : Reasons why disclosure is important

A

sponsor the sponsor is made aware of the financial significance of the benefits
informed decisions can be made by members and trustees
misleading avoid misleading beneficiaries
manages managing member expectations
encourages take up of the product
regulatory requirement
security of scheme is improved as sponsors and trustees are made more accountable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

divergence : Reasons for analysing surplus

A

divergence show the financial significance of AvE
information management information and for input to the accounts
variance the variance of the whole book must equal the sum of the variance of the individual parts
experience monitoring for feedback to the ACC
reconcile values for successive years
group the results into once off or recurring sources of surplus
executive data for executive remuneration schemes
new show the effects of new business strain
check on the valuation assumptions and calculations
extra check on the valuation data itself and the valuation process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

traitor : Features of the investor

A 
tax position
regulation on investor
assets currently held
income requirements
tastes 
other other competitors, assets and opportunities
risk appetite
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

fenced : Considerations in assessing different models

A 
fit for purpose
expertise available in house
need for flexibility
cost of each option
expected number of times to be used
desired accuracy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

call st : Prime property

A

comparables
age, condition, use or flexibility
location
lease or ownership type

size
quality of tenant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

ample direct factors : Contract design factors

A 
administration simple
marketability 
profitability 
level and form of benefits
early leaver benefits
discretionary benefits
interests of customers
risk appetite of the parties involved
expenses vs charges
competition 
terms and conditions
financing or capital requirements
accounting 
consistency with other products
timing of contributions or premiums
onerousness of options and guarantees
regulation 
subsidies cross subsidies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

ample direct factors : Contract design factors

ample

A 
administration simple
marketability 
profitability 
level and form of benefits
early leaver benefits
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

ample direct factors : Contract design factors

direct

A 
discretionary benefits
interests of customers
risk appetite of the parties involved
expenses vs charges
competition 
terms and conditions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

ample direct factors : Contract design factors

factors

A 
financing or capital requirements
accounting 
consistency with other products
timing of contributions or premiums
onerousness of options and guarantees
regulation 
subsidies cross subsidies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

fat sir : Risk mitigation techniques in project appraisal

A

further research
avoid
transfer

share
insure
reduce

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

fat sir : Risk mitigation techniques in project appraisal

fat

A

further research
avoid
transfer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

fat sir : Risk mitigation techniques in project appraisal

sir

A

share
insure
reduce

28
Q

sad life : Reasons for using reinsurance

A

smoothing of results
avoid large losses
diversification

limit exposure to risk, single events and/or accumulations
increase capacity to accept risk
financial assistance
expertise

29
Q

sad life : Reasons for using reinsurance

sad

A

smoothing of results
avoid large losses
diversification

30
Q

sad life : Reasons for using reinsurance

life

A

limit exposure to risk, single events and/or accumulations
increase capacity to accept risk
financial assistance
expertise

31
Q

create great lists : External environment

A 
competition and the underwriting cycle
regulation and legislation
environmental issues
accounting standards
tax 
economic outlook
governance 
risk management requirements
experience from overseas
adequacy of capital
trends demographic trends
lifestyle considerations
institutional structure
social trends
technology 
state benefits
32
Q

create great lists : External environment

create

A 
competition and the underwriting cycle
regulation and legislation
environmental issues
accounting standards
tax 
economic outlook
33
Q

create great lists : External environment

great

A 
governance 
risk management requirements
experience from overseas
adequacy of capital
trends demographic trends
34
Q

create great lists : External environment

lists

A 
lifestyle considerations
institutional structure
social trends
technology 
state benefits
35
Q

rapid cost : types of expense loading

A 
renewal administration
asset management
profits 
initial administration
design of the contract

commission
overheads
sales and advertising
terminal claims expenses

36
Q

rapid cost : types of expense loading

rapid

A 
renewal administration
asset management
profits 
initial administration
design of the contract
37
Q

rapid cost : types of expense loading

cost

A

commission
overheads
sales and advertising
terminal claims expenses

38
Q

grip : Aims of regulator

A

give confidence in the system
reduction in crime
inefficiencies in the market corrected, and promote efficient and orderly markets
protect consumers and the public

39
Q

service : Functions of a regulator

A

setting sanctions
enforcing regulations
reviewing and influencing government policy
vetting and registering firms and individuals
investigating breaches
“checking funding levels, management and conduct of providers
“
educating consumers and the public

40
Q

mudpis : Additional criteria for insurable risk

A 
moral hazard eliminated as far as possible
ultimate limit on liability undertaken
data needed to price the risk exists
pooling a large number of similar risks
independent risk events
small probability of occurrence
41
Q

sounder tractors : Factors affecting investment strategy

A 
size absolute or relative size of assets
objectives 
uncertainty of the liabilities
nature of the liabilities
diversification 
existing portfolio
return expected long term return

tax treatment of assets and investor, e.g. high income tax vs low CGT tax
restrictions statutory, legal or voluntary restrictions
accrual of future liabilities
currency of the existing liabilities
term of the existing liabilities
other strategies adopted by other funds or competitors
risk appetite
solvency requirements

42
Q

tech scam : regulatory influences on assets held

A

types
extent
currency
hold

single
custodianship
amount
mismatching

43
Q

dr doneq : Problems with industry data

A

details insufficient
risk risk factors are coded in different ways

differences difference in target market, administration systems, underwriting, geographical areas, distribution channels, data recording
outdated
not not everyone contributes
errors
quality the quality is only as good as the contributors

44
Q

variable crisps card : Requirements of a good model

A 
valid 
adequately 
rigorous 
inputs 
arbitrage 
behaviour 
length 
easy 
communicable 
reflects 
independent 
sensible 
parameters 
simple

clear
a
refineable
developable

45
Q

mtv caterpillar : Problems with overseas investments

A

mismatching domestic liabilities
tax
volatility of currency

custodian needed
accounting differences
time delays
expenses expenses incurred and expertise needed
regulation poor
political problems and instability
information asymmetries, information is scarce and harder to obtain
language difficulties
liquidity problems
administration additional administration required
repatriation repatriation problems and restrictions on asset ownership

46
Q

mtv caterpillar : Problems with overseas investments

mtv

A

mismatching domestic liabilities
tax
volatility of currency

47
Q

mtv caterpillar : Problems with overseas investments

caterpillar

A

custodian needed
accounting differences
time delays
expenses expenses incurred and expertise needed
regulation poor
political problems and instability
information asymmetries, information is scarce and harder to obtain
language difficulties
liquidity problems
administration additional administration required
repatriation repatriation problems and restrictions on asset ownership

48
Q

dr doneq : Problems with industry data

dr

A

details insufficient

risk risk factors are coded in different ways

49
Q

dr doneq : Problems with industry data

doneq

A

differences difference in target market, administration systems, underwriting, geographical areas, distribution channels, data recording
outdated
not not everyone contributes
errors
quality the quality is only as good as the contributors

50
Q

sounder tractors : Factors affecting investment strategy

sounder

A 
size absolute or relative size of assets
objectives 
uncertainty of the liabilities
nature of the liabilities
diversification 
existing portfolio
return expected long term return
51
Q

CASPAR

Risk vs reward

A
  • Is the loan an acceptable risk, given risk tolerance, other exposure etc?
  • Are repayment terms (eg interest rate charged) acceptable?
52
Q

CASPAR

Ability to repay

A
  • Is the borrower able to service and repay the debt when due?
  • How certain is the source of repayment?
  • What margin of safety has been built into the projections and assumptions
53
Q

CASPAR

Purpose

A
  • To what use will the monies be put?
  • Is the borrower in a sector where there are concerns, or where the total exposure is already sufficient?
  • Is the project acceptable on ethical/moral grounds?
  • Will the lending be subject to country, currency, environmental, resource, technological or other inherent risk?
  • Are there controls to ensure that the monies are correctly applied?
54
Q

CASPAR

Security

A

Is there any security in place should the borrower fail?

55
Q

CASPAR

Amount

A
  • Is the amount borrowed reasonable, taking into account the stated purpose?
  • How much does the borrower contribute? Who stands to lose most if the project fails?
56
Q

CASPAR

Character and ability

A
  • Is the borrower (and/or its principals) known, competent and trustworthy?
  • Do key personnel have the required depth and spread of skills and experience?
  • If someone is found to have lied/intentionally mislead, do not lend
  • Who introduced them? Can references be obtained?
57
Q

offer : Factors to consider when analysing mitigation options in capital appraisal

A

overall impact on distribution f npvs
feasibility and cost
further mitigation to respond to secondary risks
effect on frequency, severity and correlation
resulting secondary risks

58
Q

safer : Reasons for underwriting

A

substandard lives are identified and offered special terms
avoid anti-selection
financial underwriting is done to reduce the risk of over insurance on large policies
experience does not depart too much from that assumed in the pricing basis
risk classification ensures that all risks are treated fairly

59
Q

murda : Risk management tools

A 
management control systems
underwriting and claims control systems
reinsurance 
diversification 
ART
60
Q

dipsis : ART products

A 
discounted covers
integrated risk covers
post loss funding
securitisation 
insurance derivatives
swaps
61
Q

crises : Options to consider when comparing discontinuance options

A 
choice 
risk 
investments 
security 
expenses 
surplus
62
Q

card : Common aims of accounting standards

A

consistency in the accounting treatment from year to year
avoid distortions resulting from the contribution fluctuations
realistic recognise the realistic costs of accruing benefits
disclosure of appropriate information

63
Q

crimes : Inappropriate advice

A

complex or complicated products
rubbish incompetent advisor
integrity the advisor lacks integrity driven by sales related remuneration
model and parameter errors
errors data relating to memebers is incorrect
state state encouraged but inappropriate actions

64
Q

cossacs : Benefits of good risk management

A

confidence given to stakeholders
opportunities identified and can be taken advantage of
stability and quality of business improved - we avoid bad risks and business is better for it
synergy opportunities
arbitrage opportunities
capital better allocated
surprises avoid surprises

65
Q

trainers : Sources of data

A 
tables e.g. actuarial mortality tables
reinsurers 
abroad data from overseas contracts
industry data
national statistics
experience experience investigations on the existing contract
regulatory regulatory reports and company accounts
similar contracts

0.Combined course (17 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions