Description: This article deals with enterprise risk management and how the techniques contained within the discipline can help prevent unforeseen large mistakes in strategy, product design, and product management

Description: This paper was published as chapter II of the 1987 Valuation Actuary Handbook. The authors discuss basic tools for analyzing cash flows, including duration, scenario testing and accumulation vs. present value approach. Discounting of cash flows is discussed including the limitations of using a level interest rate. The final section discusses discounting of interest sensitive cash flows, including a discussion of the disadvantages and advantages of duration analysis. The paper concludes that “duration analysis cannot replace traditional simulations analysis but should be seen by the valuation actuary as a valuable adjunct.”

Description: The author encourages the use of sound actuarial principles to develop reasonable retirement spending budgets instead of rule of thumb approaches commonly used.

Description: New Zealand is about to launch its first variable annuity with guaranteed lifetime withdrawal benefits. The product design is mindful of the lessons from the financial crisis in the United States, Europe and Japan.

Description: Reviews basic desirable features in an economic scenario generator. Discusses basics of model structure and validation process

Description: This material, Appendix I of the 1987 Valuation Actuary Handbook, is an appendix to Chapter II of the Handbook, ‘Methods of Analyzing cash Flows to Test for Reserve Adequacy.’ The author provides additional support in his appendix which discusses the theory behind MacAulay duration and provides illustrative examples.

Description: This article discusses asset-liability management from two different paradigms, one a simulation of the firm as an external observer e.g. shareholder would view it, and the other a “still life” at a given moment from an internal viewpoint.