IAI Actuarial Core Principles · Business Management · Professionalism and ethics case studies
An actuary is torn between a client's instruction to keep a pricing methodology confidential and a colleague's request to share it for a peer review required by the firm's own governance. In weighing the options within a decision-making framework, which step most directly follows after identifying the conflicting duties?
After identifying conflicting duties, the actuary should evaluate the alternative actions against professional principles and stakeholder consequences, seeking advice if unsure. Cost, timing or seniority are not ethical criteria, and neither duty automatically overrides the other.
- AChoosing the option that is cheapest to implement
- BEvaluating alternative courses of action against professional principles and consequences for stakeholders, and seeking advice where uncertainCorrect
- CFollowing whichever instruction arrived most recently
- DDeferring entirely to the most senior person in the room
- Ignoring the confidentiality duty because peer review is always overriding
Explanation
After identifying the conflict, the actuary should generate and evaluate alternatives against the Code's principles and the effect on stakeholders, taking guidance from the IAI or a senior professional if needed. Cost, recency or seniority are not ethical criteria, and no duty always overrides the other.
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