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IAI Actuarial Core Principles · Business Management · Professionalism and ethics case studies

Kavita, an actuary, faces an ethical dilemma and is unsure how the Actuaries' Code applies. She has documented the facts and considered options. What is the most appropriate further action for her?

Kavita should seek guidance from the IAI or an experienced independent professional and record her reasoning and decision. This reflects accountability and good judgement. Acting secretly, waiting for a complaint, simply obeying the employer or acting from self-interest conflicts with professional standards.

  1. AMake a decision alone and avoid recording it, to limit later liability
  2. BSeek guidance from the IAI or an experienced, independent professional and record her reasoning and the decision takenCorrect
  3. CWait until a complaint is made and then decide
  4. DFollow her employer's instruction without further thought
  5. Pick the option that benefits her career most

Explanation

Where application of the Code is unclear, consulting the professional body or an experienced independent colleague is good practice, and keeping a record of reasoning shows accountability. Waiting, blind obedience or self-interest are inconsistent with professional standards.

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