IAI Actuarial Core Principles · Business Management

CB3 Data, Company Functions, People Skills, Influence and Communication

This CB3 chapter covers how an actuary uses data, understands company functions, works with people, influences stakeholders and communicates advice. To handle it, link every case-study answer to the data given, the business context and the audience, then give a clear recommendation with reasons and limits.

What this chapter covers

This chapter groups the practical skills that sit around actuarial calculation. You look at where data comes from and whether it can be trusted. You then analyse and present it so a decision can be made. After that, you move to the people side: how company functions work together, how teams and leaders behave, how you influence others, and how you put advice into clear words.

The topics build on each other. Good data supports good analysis. Good analysis only helps if the right people understand it and act on it. That needs knowledge of the company, the stakeholders and the communication style that suits each reader.

In CB3, this chapter is the working toolkit for the written case studies and the business game. The paper opens with multiple-choice questions of 2 marks each, then moves to written case studies. Most written answers draw on this chapter, whatever the scenario is about. Treat it as a way of thinking, not a list to memorise.

CB3 is passed at 50% overall, and the written case studies carry most of the marks after the opening multiple-choice section. Those answers reward judgement: spotting data limits, naming the right stakeholders, and giving advice a non-actuary can follow. Students who know the theory but write vague or one-sided answers lose marks easily. This chapter is also less about calculation than other subjects, so steady practice with case studies can lift your score quickly, especially if you study alongside work.

Using data, company functions, people skills, influence and clear communication: topics in the order to study them

1Data Types, Sources and Quality in Business DecisionsStart here because every later topic depends on knowing what data you have and how reliable it is.
2Analysing and Presenting Data for Decision MakingOnce you know the data, you learn how to turn it into findings and show them in a way that supports a decision.
3Company Functions and How They InteractYou need the business context to see who uses the analysis and how one function's decision affects another.
4People Skills, Teamwork and LeadershipWith the context clear, you study how people in those functions work together and how teams are led.
5Influencing and Stakeholder ManagementThis builds on people skills by adding how to identify stakeholders, understand their interests and gain support.
6Clear Communication of Actuarial AdviceStudy this last because it pulls everything together: data, context, people and influence all end in the advice you write.

How to prepare Using data, company functions, people skills, influence and clear communication

Aim to learn the ideas in plain words, then apply them to short business scenarios. Short, regular sessions on your phone work well for the concept notes. Save longer sittings for writing answers.

Read each topic once and write a three-line summary in your own words: what it is, why it matters, and how it shows up in a case study.
Build a simple checklist for data questions: source, type, accuracy, completeness, relevance, timeliness and bias. Use it on every scenario.
Make a one-page map of company functions and note what each needs from the others. Use it to spot conflicts of interest in a case.
For people and influence topics, list the stakeholders in each practice case and note what each wants and how you would approach them.
Practise writing short advice notes: a clear opening recommendation, supporting reasons, key limits and next steps. Keep the reader in mind.
Do timed case studies and mark yourself on whether you used the facts given, covered more than one viewpoint and reached a clear conclusion.
In the last week, drill multiple-choice questions on definitions and terms, and reread your checklists and summaries.

Common mistakes in Using data, company functions, people skills, influence and clear communication

Giving generic textbook lists instead of using the case facts.
Fix: Underline key facts in the case and refer to them in every point. Say how each point applies to this company.
Accepting data as reliable without questioning it.
Fix: Run your data quality checklist first and state any limits and their effect on the conclusion.
Ignoring other company functions when giving advice.
Fix: Ask who else is affected by your recommendation and mention the main trade-offs.
Treating stakeholders as one group with the same interests.
Fix: Name specific stakeholders, state what each wants, and suggest a different approach for each.
Writing advice that is technical, long and without a clear recommendation.
Fix: Put the recommendation first, keep sentences short, explain terms in plain words and end with next steps.
Leaving too little time for written case studies.
Fix: Practise under timed conditions and set a time limit for each question so every case study gets a full answer.

Last-day revision: Using data, company functions, people skills, influence and clear communication

Data can be classified by type, such as numerical or categorical, and by source, such as internal or external.
Check data quality for accuracy, completeness, consistency, relevance and timeliness before using it.
State the limits of the data and how they affect the conclusion.
Choose a presentation method to suit the audience and the message, not just what looks neat.
Company functions depend on each other, so a decision in one area affects the others.
Teams work better with clear roles, shared goals and open discussion.
Leadership style should fit the situation and the people involved.
Identify stakeholders and think about their interests and their power to affect the outcome.
Tailor your message to what the reader already knows and needs to decide.
Lead with the recommendation, then give reasons, risks and next steps.
Avoid unexplained jargon when writing for non-actuaries.
In case studies, tie every point to the facts given.

Using data, company functions, people skills, influence and clear communication practice questions

Using data, company functions, people skills, influence and clear communication in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Using data, company functions, people skills, influence and clear communication: frequently asked questions

Which subject does this chapter belong to?

It belongs to CB3 Business Management, part of the Business module of IAI Core Principles. CB3 includes a business game, case studies and an online examination.

Do I need to memorise lists for this chapter?

Learn the key checklists, but do not rely on them alone. Written answers earn marks when you apply ideas to the facts in the case and give a clear, reasoned recommendation.

How is CB3 examined?

Recent CB3 papers, including May 2026 and November 2025, were 1 hour 30 minutes for 100 marks. They had 15 multiple-choice questions of 2 marks each, followed by written case studies. IAI can change the format, so check the latest notice.

How can I practise communication skills for the exam?

Write short advice notes on practice cases and keep them to a clear structure. Read each note as if you were a manager with no actuarial training and check whether the recommendation is obvious.