IAI Actuarial Core Principles · Business Management · Skills and knowledge for working as an actuary in financial services
An actuary in a Bengaluru consultancy is asked to value a liability in an area where she has no experience, and the client needs the work in two days. Considering the technical knowledge expected of an actuary, what is the MOST appropriate response?
She should decline the work or obtain help or review from a suitably experienced actuary, and be open about the limits of her expertise. Qualification alone does not make her competent in every area, and lowering the fee or staying silent about methods does not address the gap.
- AAccept and complete the work alone, since a qualified actuary can do any actuarial work
- BAccept and let the client assume the work was reviewed even though it was not
- CDecline the work or obtain appropriate help or review from a suitably experienced actuary, and be clear about any limits on her expertiseCorrect
- DComplete the work but omit any mention of the unfamiliar methods
- Accept the work and reduce the fee instead of addressing competence
Explanation
Actuaries should only undertake work they are competent to perform, seeking help or review where needed and being open about limits. Qualification alone does not confer competence in every area, and a lower fee or silence about methods does not cure a competence gap.
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