Skip to content

IAI Actuarial Core Principles · Business Management · Characteristics of a profession and the Actuaries' Code

An actuary prepares a report for a trustee board containing technical results and a recommendation. Which feature of the report best reflects the Code's requirement to communicate clearly and not mislead?

The report should state key assumptions, limitations and uncertainty in language the audience understands. The Actuaries' Code requires communication that is clear and not misleading. Jargon, omitted uncertainty, bare figures, or leaving limitations to oral comment all fall short of this standard.

  1. AHeavy technical jargon to show rigour
  2. BOmitting significant uncertainty so the conclusion looks firm
  3. CStating key assumptions, limitations and uncertainty in language the audience can understandCorrect
  4. DProviding only the final number
  5. Leaving limitations to oral discussion only

Explanation

Communication must be clear, timely and appropriate to the audience, with material assumptions and limitations disclosed so users are not misled. Jargon, omission of uncertainty or a bare figure impede understanding.

Did you get it right without looking?

One question tells you little. A timed set on Characteristics of a profession and the Actuaries' Code shows your real accuracy, how long you take and where you lose marks.

Practise Characteristics of a profession and the Actuaries' CodeFree diagnostic mock

More Characteristics of a profession and the Actuaries' Code questions