Description: This article discusses how unemployment and underemployment information can help improve economic forecasts, insurance assumption setting and risk management. It summarizes the current modeling practices of unemployment which shows a deficiency of using unemployment/ underemployment information in actuarial works. It also gives three examples of using unemployment/underemployment information for economic assumption setting, new business growth prediction and stress scenarios related to the labor market.

Description: Risk management techniques do not include system science. System science requires that the uncertainty of the world is incorporated into the results. The articles explains the difference between risk and uncertainty. Learn how risk practices create an overoptimistic view of future outcomes.