Summary
Summary Chapter 1: Financial Risk
- Course
- BUS1003H (BUS1003H)
- Institution
- University Of Cape Town (UCT)
Great Summary of the chapter with many examples that make section simple to understand
[Show more]
Content preview
CHAPTER 1: FINANCIAL RISKWhat do Actuaries/Quants do?
They are financial professionals who deal with the financial impact of risk
typically with a long term outlook
How do we make financial sense of the future?
ANALYSE THE PAST: what info. can we gather abt the scenario/ statistics
MODEL THE FUTURE: project info forward, has anything changed?
ASSESS AND MITIGATE THE RISKS: what risks affect you/performance?
COMMUNICATE THE RESULTS: in financial terms to affected party
What you have: possessions What you owe: what a
of the company, e.g. company owes to other
property/ equipment parties, e.g. loans/
SKILLS OF AN ACTUARY:
financial and mathematical modelling
a solid understanding of the broader economic and business environment
analysis and management of uncertainty
evaluation of financial consequences
analysis of risk, and risk management
scientific pricing and reserving techniques (these are relevant to actuaries only, and
refer to managing the products and liabilities of insurance companies)
asset-liability management
overall financial management
, RISK:
Characteristic of something that is risky:
o it is uncertain
o outcome has financial consequence
o value attached to it
UNCERTAINTY:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller thashmil. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R80,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
59325 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now