Question 1:

(i) Define the following by giving an example:

(a) Systemic risk
(b) Diversifiable risk

(ii) List and describe briefly the different types of risks that an insurance company may face. (Both financial and non-financial risks)

(iii) List and describe briefly the different types of risks that may be present in a pension scheme.

Question 2:

(i) Show the Actuarial Control Cycle showing and labelling each stage clearly.

(ii) Discuss the application of the actuarial control cycle to the investment management of a fund.

(iii)Describe the monitoring needed to ensure that the investment management of the fund will remain appropriate.