Description: When companies engage in risk management activities, they can be seen as modifying their distributions of future outcomes. Often, this takes the form of trading off a sure cost for a decrease in some potential risk of loss. Companies may carry out these activities with several goals in mind, such as reduction in earnings volatility or preservation of capital. This paper will demonstrate a method for evaluating possible strategies by dividing the effects on costs and risks into three tranches: earnings, impact and estate. The tranches can be associated with different interests of the various stakeholders. This trifurcation analysis can help to explain the risk-reward trade-offs of different risk treatment alternatives and can aid in risk-related decisionmaking.

Description: Comments on Robert North’s paper, a real case study of disclosing MVL in a public employee retirement system.

Description: An exploration of risk management challenges in the Middle East, including historical overcapitalization, inadequate data and governance issues.

Description: This is the second article in a two-part series examining the potential value to companies of implementing a company profitability and risk dashboard.

Description: Recently there have been several studies on the dividend payments prior to ruin in various risk models. By employing some new obtained results in the actuarial literature, this presentation analyzes the distribution of the total dividend payments in a risk model with multi-threshold dividend strategy, where the claim arrivals are modeled by a Markovian arrival process [MAP]. A piecewise integro-differential equation in matrix form is derived and solved analytically for the moments of present value of the total dividends prior to ruin. The presentation also discusses the differences between its method and other existing ones. An example with exponentially distributed claim amounts is illustrated numerically.

Description: Response to David Kausch’s comments on the paper.

Description: A response to the comments on the paper.

Description: Despite a clear need and demographics which should be favorable to LTCI growth, the market remains stalled due to lack of understanding on the consumer side, and uncertainty on carriers' side. The 3 key risk areas for carriers are morbidity, terminations, and investment earnings. Financial market innovations which can address these include: repackaging risks as derivative securities, interest rate swaps and options, and inflation swaps.

Description: At this presentation from Session 79PD of the SOA 1999 San Francisco Annual Meeting, the speakers explain the financial risks inherent in the Asian financial crisis and other, more recent crises. They discuss how such risks can affect other countries and regions. They touch on such topics as sovereign risk and currency mismatching. The speakers also comment on impacts on multinational financial services operations and suggest ways for the industry to prevent or better manage these risks. From the Record of the Society of Actuaries, Vol. 25, No. 3.

Description: The selection of the economic capital calculation approach becomes more of a modeling decision. Now let us pause here and think about the arbitrage-free assumption at the beginning. At any time, there can be only one price on any asset. If the company considers the price calculated above as the fair price for its products, then it must hold true that the same price has to be arrived at if the company uses a real-world pricing approach instead of a risk-neutral approach. This gives us a very good basis to calibrate the appro- priate economic capital.