Skip to content

IAI Actuarial Core Principles · Business Management · Business and consumer needs, the industry value chain and competitive forces

A stakeholder map for Himalaya Health Insurance places the regulator in the quadrant of high power and high interest, and minor suppliers in low power and low interest. Under this power-interest approach, how should the firm treat the regulator?

A stakeholder with high power and high interest, such as the regulator, should be managed closely through active engagement and consultation before major decisions. Only low power, low interest groups merit minimal monitoring. Ignoring or merely informing a powerful regulator risks sanctions or restricted business.

  1. AMonitor with minimal effort
  2. BKeep informed only through annual newsletters
  3. CIgnore until a dispute arises
  4. DManage closely, engaging actively and consulting before major decisionsCorrect
  5. Treat as a customer segment for marketing

Explanation

In a power-interest grid, high power and high interest stakeholders are managed closely, with active engagement. Low power, low interest groups need only monitoring. Regulators can restrict licences and products so close management is needed.

Did you get it right without looking?

One question tells you little. A timed set on Business and consumer needs, the industry value chain and competitive forces shows your real accuracy, how long you take and where you lose marks.

Practise Business and consumer needs, the industry value chain and competitive forcesFree diagnostic mock

More Business and consumer needs, the industry value chain and competitive forces questions