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IAI Actuarial Core Principles · Business Management · Mission, business strategy, teamwork and time management

A pension consultancy's vision is to be 'the most trusted adviser to Indian employers'. An actuary employed there is asked to soften an adverse finding in a valuation report so that a major client stays happy. Which response best reconciles the firm's mission with the Actuaries' Code?

The actuary should refuse to change the substance of the finding, communicate it clearly and escalate internally if pressured. Being a trusted adviser depends on integrity, and the Actuaries' Code requires honest, non-misleading communication. Softening or hiding results would undermine both the vision and professional duties.

  1. ASoften the finding, since client retention supports the vision
  2. BRemove the finding quietly and not tell the client
  3. CRefuse to alter the substance of the finding, communicate it clearly, and escalate internally if pressuredCorrect
  4. DResign immediately without discussing it with anyone
  5. Let the client write the conclusion so responsibility passes to them

Explanation

Trust, the heart of the vision, depends on integrity and honest, clear communication. The Code requires the actuary to act with integrity and not mislead. Softening, hiding or delegating the conclusion breaches this; immediate silent resignation avoids the duty to communicate.

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